Skip to main content

Full text of "ABC News 1978 1979"

See other formats



                             1501 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Micro-package for the military

BYLINE: BY GEOFFREY CHARLISH; EDITED BY ALAN CANE

SECTION: SECTION I; Technology; Pg. 7

LENGTH: 806 words


IT IS one thing to produce the new generation of 16-bit microprocessor, the so
called "supermicro," for use in commercial digital equipment -- Intel, Motorola
and Texas are leading exponents -- but when the military calls for the same
thing, the going gets that much tougher.

These developments, military or civil, are of considerable significance because
they mean that the power previously vested in the minicomputer but contained in
a box the size of a filing cabinet, can now be drawn from a single printed
circuit card card housing a microprocessor no bigger than a large postage stamp.


Maltreatment

In the commercial market place competition is keen to produce low cost versions
of shoe-box sized machines that half a dozen people can use at the same time.

In the military market however, the emphasis is different.In particular, the
devices have to be able to stand up to physical maltreatment that would be
disastrous for most commercial products.

The tiny computers might find themselves aboard a missile for example, which
when launched could produce severe vibration over quite a wide frequency
spectrum (due to the rocket motors), possibly in conjunction with very high or
very low temperatures.  While in flight they might have to survive the hard
radiation from a defensive nuclear blast.

But even before they take off on their one way trip, they will have to remain
unaffected by storage for long periods in temperatures that can range from
arctic to tropical.

The military also has specific supply requirements: for national security
reasons it generally demands that critical components be "home" made.

In the UK, Ferranti is a leading supplier in this specialised semiconductor
field and this week has announced its selection by the Ministry of Defence to
develop and manufacture a very large scale integrated (VLSI) version of the
Military Argus M700 computer, to be known as M700/40.

Most of the items, the four special chips for example, are already available:
the trick is to bring them together in a hybrid package that will meet all the
stringent temperature, shock, vibration and radiation tests laid down by the
MoD.

It is expected that the M700/40 will be used in a wide range of MoD and export
systems.  It has already been adopted for future developments of the British
Aerospace Rapier missile system.

The processor itself, employing the four VLSI chips, will be assembled in a
hybrid multi-layer thick film package measuring only 91 x 56mm.  It will operate
six times faster than its predecessor the M700/20, which was constructed on two
printed boards holding 10 dozen integrated circuits.

Evolution

Ferranti believes that advances it has made in bipolar technology, in logic gate
design (in which a buffered gate reduces logic swings and improves the
speed/power factor), and in the structure of its uncommitted logic array (ULA),
have all contributed to the MoD decision.

Basically, these semiconductor technology evolutions mean that high speed
devices of microprocessor complexity can be implemented in simple array
structures instead of in the complex, high risk custom-designed devices that
have previously proved necessary.

The company believes that this dramatically reduces the time, cost and risk
associated with such developments, without compromising performance.

Up to now, the high gate speeds needed for military microprocessor design have
not been available from ULA (which is basically an arrangement of unconnected
active elements on silicon, connected up to suit the task).

But the new developments mean that speeds previously only associated with ECL
(emitter coupled logic) technology can be obtained, but at "significantly
reduced" power dissipation.  Typically, gate delay is 2.5 nano-seconds and gate
power dissipation 300 microwatts.  Thus, maximum dissipation of the M700/40 is
six watts from the dual 3.5/5.0 volts supply.

Ferranti is also developing for the Ministry a complete military microcomputer
on a card, the M700/41, based on the new hybrid processor.

The computer incorporates a cache memory, a device which tries to predict what
might need to be drawn from disc memory, holding the program/data material ready
for more rapid use when actually called for.  Faster operation results.

Eurobus

Also available is a private memory interface, which allows access to memory in
the processor available only to the M700/41 system, giving faster cycle times
than any other, non-dedicated memory that might be employed over the system bus.

The computer talks to other devices over Eurobus, the MoD-developed data/address
highway.  Thus, in existing M700 computer systems, the M700/41 can be treated as
a plug in pull-out module during all stages of system development, commissioning
and deployment.

LANGUAGE: ENGLISH

GRAPHIC: Picture, The Ferranti VLSI Military Argus M700/40 microprocessor on the
right of the picture compared with its forerunner, the twin Double Eurocard
implement M700/20.

                   Copyright 1982 The Financial Times Limited


                             1502 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Software for pipeline scheduling

BYLINE: EDITED BY ALAN CANE

SECTION: SECTION I; Technology; Pg. 7

LENGTH: 216 words


A PIECE of computer software designed for the planning and scheduling of oil
pipelines has been developed by Scicon Computer Services for Mainline Pipelines,
the oil company consortium.

Now it is available on a service bureau basis from Scicon, the computer services
arm of BP. It runs at present on an IBM 3033 large mainframe, but the company
will rewrite the system to run on a client's own large computer.

Mainline Pipelines comprises Esso, Amoco, Gulf and Texaco; Esso, the major
partner in the consortium, operates the pipeline serving the North West and
Midlands from the four Milford Haven refineries operated by the partners.

According to Scicon, oil pipeline planning and scheduling by computer has been
tried before and abandoned.  It claims its system is the first successful
application in the UK.

There are two modules.  A planning one which produces a monthly plan estimating
product arrival dates at each location to within a day and calculating product
order and batch size according to demand at the terminals, inserting kerosene
buffers as appropriate.

A scheduling module produces weekly a ten-day schedule showing product arrival
to the nearest 15 minutes.

Tony Hill of Scicon will explain the mathematical wonders of the system on 0908
565656.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1503 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Lifting slings by Safex

BYLINE: EDITED BY ALAN CANE

SECTION: SECTION I; Technology; Pg. 7

LENGTH: 72 words


A range of lifting slings with safe working loads from one to 12 tonnes
(pictured above) has been introduced by Safex Equipment. The company offers a
choice of styles in single and multi-ply and endless slings.  Webbing eyes may
be of the flat or becket types.  A leaflet containing tables showing how rated
capacities are affected by different uses is available from Safex at 12,
Commerce Way, Croydon.  01 684 1006.

LANGUAGE: ENGLISH

GRAPHIC: Pictures 1 through 3, no caption

                   Copyright 1982 The Financial Times Limited


                             1504 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Hybrid circuits

BYLINE: EDITED BY ALAN CANE

SECTION: SECTION I; Technology; Pg. 7

LENGTH: 230 words


WHAT is claimed to be the world's first fully operational automatic production
line for thick film hybrid circuits has been installed in Tectonics' new factory
at Swindon.

The equipment was designed and constructed by a Weymouth based company, Dek
Printing Machines and has Department of Industry support.

Thick film hybrids are miniature electronic circuits which are easier to produce
than silicon chips and have wide use in industry.

They are manufactured by screen printing -- a process which is applied to many
items including the production of price tags for goods, and putting coloured
patterns onto fabrics.

Pastes made with precious metals such as gold, platinum and palladium are used
as the printing inks for the circuit layout.  These are transferred to the thin
ceramic strips which form the base.  Resistors can also be produced from other
pastes while other electronic components such as capacitors, transistors and
silicon chips are bonded to the ceramic.

The Tectonics production line has each ceramic circuit contained within a large
magazine which is mounted on each machine carrying out part of the process.  It
is simply a matter of moving magazines from one machine to another to complete
the processing.

The advantage of hybrid circuit over silicon chips is that they can made
economically without needing high volume production.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1505 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Safe effluent sampling

BYLINE: EDITED BY ALAN CANE

SECTION: SECTION I; Technology; Pg. 7

LENGTH: 169 words


ACCURATE AND safe operation even with the most difficult and hazardous of
industrial effluents is possible with a design of effluent sampler offered by
Warren Jones Engineering of Bicester.

The unit uses no continuous electrical pumping process, but lifts a sample by
means of a large diameter piston acting in a glass cylinder, the piston itself
driven by an air operated [TEXT ILLEGIBLE] . After material has been drawn in,
the piston descends again, evacuating all but a residual, measured sample.

Large bore inlet tubing allows a sample to be taken quickly and, at the end of
the cycle the sample is expressed through a valve into a collection vessel.
High pressure purging through a piston inlet cleans the cylinder, inlet tube and
delivery tube at each sampling cycle.

The absence of electrical parts means that the system, called Magnum, can
operate safely in the presence of petrochemical or solvent vapours for long
periods without attention or maintenance.  More on 08692 42712.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1506 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

From computer to telex

BYLINE: EDITED BY ALAN CANE

SECTION: SECTION I; Technology; Pg. 7

LENGTH: 175 words


AN INTERFACE unit that can be programmed to allow a variety of makes of computer
to be connected to the international telex system has been developed by Data and
Control Equipment of Princes Risborough, Bucks (08444 3281).

The software is in modular form, consisting of a line module supplied to meet
the telex network and PTT regulations for the country of use, and a host module
supplied to suit the communications protocol of the computer installation.

Known as AM700, the unit buffers the data sent by the mainframe and then reads
it into the telex line at telex speed (6.66 ch/sec).  The unit can communicate
with the mainframe at speeds between 50 and 9600 bits/sec, and all the necessary
code conversion is carried out automatically.

The national and international telex network now has in excess of 1m subscribers
and is a relatively low-cost method of sending data.  Now, messages and other
data can come straight out of the company computer into the telex line,
obviating the manual work that this previously involved.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1507 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Strain gauges

BYLINE: EDITED BY ALAN CANE

SECTION: SECTION I; Technology; Pg. 7

LENGTH: 53 words


A RANGE of bonded weldable strain gauges from the Hitec Corporation is now being
marketed in the UK by Anley Controls 16, Anley Road, London (01-603 4007).  The
heavy duty gauges incorporate a foil sensor bonded to a stainless steel carrier
and are claimed to be especially suitable for use in exposed situations.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1508 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Finance director for Whitbreads

SECTION: SECTION I; Appointments; Pg. 14

LENGTH: 43 words


Mr Lionel Ross is to join the board of WHITBREAD AND COMPANY, as finance
director on April 1 when Mr Andrew McQuillan retires.  Mr Ross joins Whitbread
from Allied Suppliers (Holdings) formerly Cavenham, where he has been finance
director since 1968.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1509 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

SECTION: SECTION I; Appointments; Pg. 14

LENGTH: 60 words


Mr Eric Meldrum has been appointed chairman, of BARTON CONDUITS, Walsall, and Mr
John Moore has been appointed chairman of both Barton Abrasives, Wolverhampton,
and Barton Aluminium Foundries, Birmingham.  Both Mr Meldrum and Mr Moore are
directors of Barton Group, and their appointments follow the retirement of Mr
Graham Sheldon from the group board.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1510 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

SECTION: SECTION I; Appointments; Pg. 14

LENGTH: 56 words


Mr Laurence Kelly has been appointed a part-time member of the MONOPOLIES AND
MERGERS COMMISSION. Professor K. D. George has been reappointed for a further
three-year period from January 15.  Mr Kelly is deputy chairman of Helical
Bar.Professor George has been Professor of Economics at University College
Cardiff since 1973.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1511 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

SECTION: SECTION I; Appointments; Pg. 14

LENGTH: 66 words


Mr Michael H. Marx has been appointed financial director of HERON CORPORATION.
He was formerly a partner in H. W. Fisher and Co., one of the company's joint
auditors.  Mr Alan I.  Goldman who has been financial director since 1974, will
be assuming wider responsibilities and remains a director of Heron Corporation
and financial director of Heron International, the Group's holding company.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1512 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

SECTION: SECTION I; Appointments; Pg. 14

LENGTH: 19 words


Mr C. W. Sparrow has retired from the board of DANISH BACON CO. and Mr D. K.
Hughes has joined the board.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1513 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

SECTION: SECTION I; Appointments; Pg. 14

LENGTH: 13 words


Mr David J. Wood has been appointed to the board of J. ROTHSCHILD & CO.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1514 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

SECTION: SECTION I; Appointments; Pg. 14

LENGTH: 23 words


Mr W. Ford has been appointed a director of BROWN & TAWSE.  Mr E. Hartley has
been appointed a director of Brown and Tawse Tubes.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1515 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

SECTION: SECTION I; Appointments; Pg. 14

LENGTH: 18 words


Mr K. E. Cunningham has resigned as a director and secretary of OIL AND
ASSOCIATED INVESTMENT TRUST.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1516 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

SECTION: SECTION I; Appointments; Pg. 14

LENGTH: 35 words


Mr V. C. Robertson has been appointed a member of the board of the COMMONWEALTH
DEVELOPMENT CORPORATION, for three years, from January 1.  He was managing
director of Hunting Technical Services until 1977.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1517 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

SECTION: SECTION I; Appointments; Pg. 14

LENGTH: 21 words


Mr J. H. Wilson has been appointed finance director of TRAVIS & ARNOLD.  He
succeeds Mr R. F. Garnett who is retiring.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1518 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

SECTION: SECTION I; Appointments; Pg. 14

LENGTH: 37 words


Mr T. W. Stafford who joined the Society as a junior office boy in 1927, has
been appointed chairman of SUNDERLAND AND SHIELDS BUILDING SOCIETY.  He succeeds
Mr A. G. McLellan who will continue to serve on the board.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1519 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

SECTION: SECTION I; Appointments; Pg. 14

LENGTH: 14 words


Mr John Eaton has been appointed director of business development by DYNO-ROD.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1520 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

SECTION: SECTION I; Appointments; Pg. 14

LENGTH: 19 words


HILTON ADVERTISING (MIDLANDS) has promoted Mr Barry Arnold, formerly executive
director, to managing director.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1521 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

SECTION: SECTION I; Appointments; Pg. 14

LENGTH: 40 words


Mr K. A. Carter has been appointed chairman of SEDGWICK AVIATION in succession
to Mr A. Parry who has retired.  Mr Carter will continue as chairman of Sedgwick
Cargo.  Mr J. H. Shapiro has been appointed a director of Sedgwick Marine.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1522 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

SECTION: SECTION I; Appointments; Pg. 14

LENGTH: 27 words


Mr S. Hanratty has been appointed managing director of SCANGLO INTERNATIONAL, a
member of the Myson Group.  Mr J. Conellan has been appointed works manager.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1523 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

SECTION: SECTION I; Appointments; Pg. 14

LENGTH: 39 words


Mr Keith G. Hancox has been appointed managing director of GEORGE COHEN
MACHINERY, part of The 600 Group.  He will be resigning as managing director of
Sambron, which he founded in 1971 as the UK subsidiary of Sambron, France.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1524 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

SECTION: SECTION I; Appointments; Pg. 14

LENGTH: 46 words


BRITISH CALEDONIAN HELICOPTERS has appointed Captain Robert M. MacLeod to the
new post of managing director.  He joins from BP Exploration and Production
where he is services operations manager, based at Dyce Airport, Aberdeen.  He
will continue to work at Dyce Airport.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1525 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

SECTION: SECTION I; Appointments; Pg. 14

LENGTH: 31 words


Mr Geoffrey W. Cross has been appointed financial director of LONDON AND
LIVERPOOL TRUST.  He was formerly a partner in the Birmingham office of Robson
Rhodes, chartered accountants.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1526 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

SECTION: SECTION I; Appointments; Pg. 14

LENGTH: 71 words


Mr P. J. van de Pol has been appointed managing director of INDUSTRIAL AND
MERCANTILE CREDIT INSURANCE and a director of Jardine Glanvill (UK) following
the retirement of Mr J. W. Vickers.  Mr Michael Gerrish remains chairman of
Industrial and Mercantile Credit Insurance.  Mr R. L. Allen has been appointed
chairman of Industrial and Mercantile Credit Management and Mr J. S. O'Brein has
been appointed managing director.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1527 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

SECTION: SECTION I; Appointments; Pg. 14

LENGTH: 46 words


Mr Alan Morgan has been promoted to vice president, FIDELITY BANK. He is manager
of the bank's London money market center.  Appointed operations officer were Mr
David Lendon and Ms Susan Pocock.  They serve as documentary credits loan
administration supervisors.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1528 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

SECTION: SECTION I; Appointments; Pg. 14

LENGTH: 35 words


Mr A. G. L. Alexander has been elected chairman of BEREC GROUP following his
appointment to the board.  Mr D. J. Snowdon also became a director.  Mr C. G.
Stapleton remains managing director of the company.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1529 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

SECTION: SECTION I; Appointments; Pg. 14

LENGTH: 35 words


Mr James Stevenson, of Balfour Beatty, is to be the next vice-chairman of the
FEDERATION OF CIVIL ENGINEERING CONTRACTORS.  He will take office on May 11 when
Mr Philip Beck, of Mowlem, becomes chairman.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1530 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

SECTION: SECTION I; Appointments; Pg. 14

LENGTH: 49 words


Three directors have been appointed to the board of URWICK, ORR & PARTNERS (UK).
Mr W. G. White becomes director of operations in Scotland; Mr R. G. Gilbert,
responsible for liaison with financial institutions in the City; and Mr H.
Duncombe, engineering organisations in Southern England.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1531 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

SECTION: SECTION I; Appointments; Pg. 14

LENGTH: 35 words


Mr Thomas M. Sands has been appointed managing director, ELIZABETH ARDEN, UK.
He will replace Mr Pierre de Champfleury, who is leaving Elizabeth Arden to
pursue his career outside the cosmetics industry.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1532 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

SECTION: SECTION I; Appointments; Pg. 14

LENGTH: 45 words


Two assistant general managers have been appointed at the UNITED BANK OF KUWAIT.
They are Mr Andrew Ripley, formerly a senior financial consultant with the
Stanford Research Institute, and Mr Ralph Hulbert from Larpent, Newton & Co,
development finance company.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1533 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

SECTION: SECTION I; Appointments; Pg. 14

LENGTH: 16 words


Mr Gareth Jones has joined REDLAND as group treasurer.  He was with Conoco as
treasurer.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1534 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

SECTION: SECTION I; Appointments; Pg. 14

LENGTH: 39 words


Mr J. W. Fraser, Mr M. T. Coulton and Mr T. R. Bruce have been appointed
directors of LESLIE LANGTON HOLDINGS.  Mr A. E. Clare, Mr R. W. Clifford and Mr
R. B. Pearson have been appointed directors of Langton Underwriting Agents.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1535 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

SECTION: SECTION I; Appointments; Pg. 14

LENGTH: 19 words


Mr Stephen Brandon and Mr Michael Mire have been elected principals in the
London office of McKINSEY & CO.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1536 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

SECTION: SECTION I; Appointments; Pg. 14

LENGTH: 26 words


Mr Bruce Alvis, who joined the LONDON TOBACCO COMPANY as production manager when
it was set up 16 months ago, has been appointed to the main board.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1537 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

SECTION: SECTION I; Appointments; Pg. 14

LENGTH: 13 words


SCIENTIFIC AMERICAN has appointed Mr Roy Edwards as UK sales director.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1538 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

SECTION: SECTION I; Appointments; Pg. 14

LENGTH: 56 words


Mr A. Cheetham, group managing director of Stothert and Pitt, has been elected
president of the FEDERATION OF MANUFACTURERS OF CONSTRUCTION EQUIPMENT AND
CRANES.  Mr K. J. Parker, chairman, Frederick Parker Group, was appointed deputy
president and Mr V. Canham, home sales director, Coles Cranes, was appointed
vice president.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1539 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

SECTION: SECTION I; Appointments; Pg. 14

LENGTH: 18 words


Mr Terry Wright has been elected to the board of VERMONT RESEARCH, Leatherhead,
at technical director.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1540 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

SECTION: SECTION I; Appointments; Pg. 14

LENGTH: 44 words


NORTH AMERICAN REALTY & INVESTMENT CORPORATION has appointed Mr Melvyn Lux as
managing director and Mr Alan M. Sloam as financial director.  The company act
as sole agent in the UK for Texas real estate developers -- Spring Creek
Investments of Dallas Inc.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1541 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

SECTION: SECTION I; Appointments; Pg. 14

LENGTH: 76 words


The engineering division of DAN-AIR SERVICES, part of the Davies and Newman
group, has re-organised its senior management under Mr E. T. Evans, managing
director.  Mr Ron Smith becomes deputy managing director (previously engineering
director); Mr Len Crockford -- technical director (group technical manager); Mr
Guy Ruffle -- production director (engineering manager, Manchester); and Mr
Michael Ellis -- commercial director (commercial manager).

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1542 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

SECTION: SECTION I; Appointments; Pg. 14

LENGTH: 26 words


BRITISH FERMENTATION PRODUCTS has appointed Mr John Rawstorn to the board.  The
company is the UK operating subsidiary of Gist Brocades, Delft, Holland.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1543 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

SECTION: SECTION I; Appointments; Pg. 14

LENGTH: 15 words


Mr Steve Kenis has been appointed managing director of WILLIAM MORRIS AGENCY
(UK).

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1544 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

SECTION: SECTION I; Appointments; Pg. 14

LENGTH: 121 words


Mr Richard A. Bailey, previously managing director of Lily Industries and UK
vice president of LILLY INTERNATIONAL CORPORATION, has been appointed vice
president for Europe, with responsibility for Benelux, France, Germany, Italy
and for the European office in London. He will remain a member of the board of
Lilly Industries Limited.  The new managing director is Mr Gary J. Clark, who
relinquishes his position as director of international business planning, Lilly
International Corporation.  Mr William E. White has been promoted to vice
president.  Based in London, he will be responsible for those areas of Europe,
the Middle East, Africa which are managed by Lilly's offices in Rome, Copenhagen
and Vienna.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1545 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

SECTION: SECTION I; Appointments; Pg. 14

LENGTH: 42 words


Mr M. W. Brackenreed-Johnston has been appointed chairman and Mr J. L. A. Gomes
Da Silva managing director of the new separate aviation division of JARDINE
GLANVILL.  Mr Brackenreed-Johnston has been appointed to the board of Jardine
Glanvill.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1546 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

SECTION: SECTION I; Appointments; Pg. 14

LENGTH: 22 words


Mr D. C. Linton and Mr M. F. Hicks will be joining the partnership of FRANK H.
STATHAM AND SON, stockbrokers, on January 11.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1547 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

SECTION: SECTION I; Appointments; Pg. 14

LENGTH: 48 words


At CHANDLER HAGREAVES WHITTALL AND COMPANY Mr Michael Beck and Mr Frederick
March join the board; Mr Nicholas Talbot-Smith and Mr Peter Trend become
departmental directors; and from January 1 1982 Mr Richard Arthurs, Mr Ronald
Breeze and Mr Kevin Donovan become assistant directors.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1548 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

SECTION: SECTION I; Appointments; Pg. 14

LENGTH: 33 words


Three divisional managing directors, Mr C. G. Burton, Mr P. S. Candy and Mr J.
Pasfield, together with Mr H. Mercer and Mr R. D. Smith have been appointed to
the board of CLIFFORD'S DAIRIES.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1549 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

The dancing year

BYLINE: Clement Crisp

SECTION: SECTION I; The Arts; Pg. 15

LENGTH: 1483 words

HIGHLIGHT: Clement Crisp reflects on the ballet in 1981


Not a good year for dance in Britain; a time of indecision, pussyfooting, having
a generally make-shift air, not all due to financial stringencies.  It was a
year of annivrsaries at Covent Garden, with the Royal Ballet celebrating its
50th anniversary, and La Fille mal gardee coming of age.  The Royal Ballet's
jubilee was curiously marked, by a gala performance made up of fragments from 38
ballets -- though nothing from the staple classics was to be seen -- and by
predictable casting in a predictable repertory throughout most of the year.

Isadora arrived and sent a quiver through many very delicate sensibilities.  It
might seem that Kenneth MacMillan was mounting a Red Brigade assault on the
fairy-fanciers, but Isadora was an attempt at a theatre piece to break the mould
of balletic traditionalism (and, like dance works here and in New York, it
suggested a renewed interest in the forms and possibilities of narrative).  It
needed pruning, some of which it received, and it will perhaps be best
appreciated in Derek Bailey's still-to-be-shown television version for Granada,
scheduled for December, but a victim of the Polish crisis.

Programming at Covent Garden was often ungainly; neither of the autumn novelties
-- Illuminations and a Napoli divertissement -- looked happy, though the latter
must be persevered with.  So must the classic repertory, which seemed thin in
dance as in imagination; one vivid, credible Giselle came from Galina Samsova
and David Wall, with ideal support from Stephen Jefferies' Hilarion and Monica
Mason's Myrtha.

Welcome opportunities were given to younger dancers, notably Ashley Page in
Illuminations, Briony Brind (a promising Swan Queen), Fiona Chadwick (as the
Firebird and as Isadora), and those younger artists lately seen in Afternoon of
a Faun.

MacMillan ballets received superb ensemble playing from the whole company, and
David Wall's Rudolph in Mayerling, early in the year, stands out in the memory,
as do Jennifer Penney's Manon on the evening when she received her Evening
Standard Award, and Marguerite Porter's debut in the same role, while Monica
Mason remained at her very best in Rites of Spring.

It was a year of achievements by the Sadler's Wells Royal Ballet, not least its
three London seasons, in the evening of new ballets by five young
choreographers, and in the acquisition of a second domicile in the revovated
Birmingham Hippodrome.  In a final blaze of glory SWRB presented a most handsome
(thanks to Philip Prowse's design) and persuasive Swan Lake, mounted by Peter
Wright with Galina Samsova, and making intriguing reference to Soviet
productions.  Of the SWRB dancers especial mention must go to David Ashmole, a
classic premier danseur of ever-developing power and authority.

London Festival Ballet kept a low, hard-working profile, concentrating on a
standard repertory for reasons of economy, though no one should complain of
staple classic offerings when Eva Evdokimova, Evelyne Desutter and Elisabetta
Terabust are seen in partnership with Peter Schaufuss, Patrice Bart and Jay
Jolley.  Young dancers were shown in major roles; the company's real bid for
novelty came in the Bartok centenary celebrations at the Coliseum, when the ENO
Bluebeard was given with Festival's presentation of The Miraculous Mandarin in
choreography by Flemming Flindt, and a brand new Wooden Prince produced by
Geoffrey Cauley.

The Chinese Opera manner chosen by Cauley and his designer Philip Prowse
(decorator of the year) was eye-dazzling and clever, but the uncut score proved
dreadfully long.  (The Hungarian National Ballet's version shown in Paris later
in the year, albeit without such visual distinction, made more sense, because
pruned by nearly one-third.)

The dancing in seasons by London Contemporary Dance Theatre and Ballet Rambert
was sound, and both repertories gained worth-while novelties.  For Rambert,
Richard Alston used Stravinsky's two-piano reduction for a well-judged Rite of
Spring, and Christopher Bruce made the attractive Prelude and Songs and Dancing
Day. For LCDT Robert Cohan turned to narrative for his full-evening Dances of
Love and Death, and Siobhan Davies was on her best form with Free setting. Other
new works ranged from the well-intentioned to the exasperating (Cliff Keuter's
borborygm, Figures of Wind, for Rambert; the chaotic and aptly named Danger,
work in progress for LCDT), but my prize for tedium goes to an evening of
"Contact Improvisation" at Riverside Studios, notable only for the naivete shown
by practitioners of the Post Modern Manner, many of whom busy themselves with
activities as pertinent as rediscovering the wheel.

A Dance Umbrella season took place, and spread its efforts wide, but the
illusory nature of the "dance explosion" -- so eagerly touted, so dubiously
evident -- was never more clear than in the lack of full houses for the Sadler's
Wells seasons by Merce Cunningham and Twyla Tharp, both providing superlative
dancers in superlative repertory.

American dancing took a different kind of beating in the appearance of a dim
troupe calling itself Dance Stars of America, and in the visit of the Boston
Ballet with a fatuous Swan Lake, memorable only for showing von Rothbart as a
cuddly owl.  The Boston visitors were part of the Nureyev Festival in which
Nureyev's charismatic presence was still all his myriad fans could desire in
this, the 20th year since he opted of the West.  In these two decades he has
gained greater fame, has danced more and more venturesomely, and has provided
greater inspiration for public and for dancers, than any ballet star since Anna
Pavlova.

The Dance Theatre of Harlem came to Covent Garden, their every ballet greeted
with uproar more usual at wrestling matches; they were seen at their best in
Balachine ballets, and at much less than their best in everything else.

Sadler's Wells provided a home for other visitors: a Kabuki troupe led by the
eloquent Ennosuke Ichikawa III; the earnest Tanzforum Cologne, with merits more
didactic than choreographic; the Theatre du Silence from La Rochelle, a well -
mannered ensemble; Northern Ballewt Theatre, with a charming Nutcracker and a
charmless Midsummer Night's Dream.

Worst event of the year for me was the Sydney Dance Theatre, who revealed what I
take to be rabid francophobia in assaults on Cocteau in a risible Poppy (naked
matelot behind a scrim, and three Nijinskies on the rampage), and an
insufferable Scheherazade and Daphnis and Chloe whose feeling for Ravel compared
badly with Attila the Hun's for flower arrangement.  The Stuttgart Ballet came
to the Coliseum, but despite an ecstatic reception, I found the repertory less
than satisfactory, with only Marcia Haydee able to justify The Lady of the
Camellias, and little to admire in Cranko's Swan Lake. From abroad I reported
with great pleasure on New York City Ballet's Chaikovsky Festival and on other
programmes at the State Theatre in New York, and also on Makarova and
Baryshnikov with American Ballet Theatre at the Met; on Peter Schaufuss'
magnificent Napoli for the National Ballet of Canada in Toronto, and on the
Royal Winnipeg Ballet and its exquisite young ballerina, Evelyn Hart; on the
Royal Danish Ballet in Paris, with a golden Kermesse in bruges, on the Ballet de
Marseille and the Ballet Theatre Francais, and on the Hungarian National
Ballet's Bartok triple bill which contained Seregi's brilliant realisation of
The Miraculous Mandarin.

One most pleasing memory is owed to John Curry.  A recent ITV Sport's
presentation gave a tantalising glimpse of Curry in an ice spectacular from the
Queen's Club.  The masterly simplicity of this unique, poetic artist in a short
solo to a Grieg nocturne made the frenzy of twirling and triple spins that
preceded his appearance look more than usually vulgar and meretricious.  Curry
really does dance on ice; the rest skate.

On a final note of gratitude let me record that it was a year of generous and
continuing private sponsorship, from Midland Bank's backing, yet again, of a
Prom week at Covent Garden, this time exclusively balletic, to Barclays Bank's
princely half million promised over the next four years to support touring by
the Royal and SWRB companies, and the same bank's gift of £95,000 to Festival
Ballet for a new Swan Lake next spring.  Sainsbury's continued to make SWRB
seasons possible throughout the country, and many other organisations rallied
grandly to the cause.  Generosity of this kind to our best companies is
increasingly admirable in the present financial climate, but it is no answer to
paying for the arts, nor a means of maintaining standards which might otherwise
fall, victims of inflation and official pig-headedness.

LANGUAGE: ENGLISH

GRAPHIC: Picture, Merle Park as Isadora

                   Copyright 1982 The Financial Times Limited


                             1550 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Theatre in Frankfurt

BYLINE: by RONALD HOLLOWAY

SECTION: SECTION I; The Arts; Pg. 15

LENGTH: 808 words


The first indication that the Schauspiel Frankfurt's production of Richard III
(Konig Richard der Dritte) was a serious undertaking was the hefty 135-page
programme-book, packed with relevant essays and edited with historical finesse
by house dramaturg Wolfgang Storch.  Then, too, the translation was safety in
the hands of August Wilhelm Schlegel, the inspired Romantic poet -- not some
contemporary would-be diviner of Shakespeare's verse in street jargon (so often
the case over the past decade).  Finally, when the curtain went up, a sparsely
decorated stage hung and black practically guaranteed an ensemble-wrestling with
the Bard on his own dramatic terms, instead of a circus-tent approach to the
classics (favoured by the sonnyboy directors who ply the German circuit from
Berlin to Basle).

Wilfried Minks directed and designed.  His talent, and preference, for the
conceptual side of theatre leaves the actor very much on his own, like a body
decorating an environmental-art piece.  Result: the lines could be heard, but
there was no subtlety of delivery, no dramatic tension, no clashing of
personalities, no bravura performance by the crippled monarch as a creeping
madness spoils a brace of well-laid plans.

Fritz Schediwy as Richard manoeuvred a vast space like a frantic Hunchback of
Notre Dame, while Buckingham (Peter Kollek) let one golden opportunity after
another slip through his fingers as a convincingly sheming henchman.  It was
Hastings (Wilfried Elste) and the Duchess of York (Dietlinde Hillebrecht) who
rose to the occasion, stealing their scenes in suitable fashion from the unwary
in powdered wigs and period costumes (why these "extras" was not clear).

The delight of the production was the movable box-containers to allow for swift
scene changes -- Minks at his innovative best.  The programme also listed the
greats in the title role: Garrick and Kean in London, Dawison and Kainz on
German stages, the Berlin productions with Wegener, Kortner and Krauss.
References to recent Jacek Woszczerowicz (Warsaw) and Manfred Wekwerth (East
Berlin) productions, in which Richard embodied both king and fool, whetted the
appetite -- that, and the knowledge that Schiller compared this political
historical drama with a Greek tragedy, while modern interpretations have
perceived Stalin as a revenous Richard.

What then was missing?  A concept perhaps -- or Minks and the Frankfurt ensemble
simply aimed too low.  This respected theatre has recently suffered under a
sticky Intendant crisis, one in which only the court intrigues made the
headlines.  It's possible that Shakespeare this time was used as a form of
purgation.  Whatever, the return to performance for its own sake is to be
greeted.  Indeed, it's a welcomed ray of hope on an otherwise rather bleak
horizon so far as the classics are concerned on German stages, where "total
theatre" and stereotyped acting have been the norm.

And a footnote: since theatre doesn't exist in a vacuum, and the night on which
I saw Richard III was cold and bitter, one could not help weighing each line
spoken by the protagonist as though he were, in truth, a Polish general.

The idea for reviving Anouilh's one-acter, L'orchestre, at the Kammerspiel
Frankfurt was in itself intriguing.  The comedy was penned in 1935, but director
Bernd Rainer Krieger felt he could draw the most out of a shortened "dream
sequence" version, framed by Arthur Adamov's Les retrouvailles, written in 1953
as the Theatre of the Absurd was in full swing in Paris.  Thus, Leon of the
former is a concoction of Edgar of the latter, who in Adamov's Das Wiederfinden
is a timid individual suffering under a mother (female) complex.  Then, to add a
bit more spice to the affair, some Francophile dramaturg at the Schauspiel
Frankfurt framed the combined one-acters inside two poems by Jacques Prevert: La
lessive (Die Grosse Wasche) and La grasse Matinee (Uppiger Morgen), both
stemming from the poet's Agit-Prop-Theatre days (sometime between 1932 and
1936).

Result: an exercise in a drama laboratory.

But one that aptly fits the dimensions of the Kammewrspiel Frankfurt.  The poems
weave their magic in a Horspiel context without dramatic appendage to speak of.
The Adamov purgation is more Strindberg than Absurd, and in end effect is a
weary bit of soul-searching.  Das Orchester, on the other hand, is a merry and
delightful farce, played to the hilt with a deadpan worthy of Labiche and Rene
Clair at their brittle best.  The principals in the Adamov-Anouilh - Prevert
evening -- Hanjorg Assmann, Jenny Lattermann, Manuela Alphons -- are all
exceptional thespians, yet the gals in the orchestra deftly pull the rug out
from under them.

So much the better -- there is no surer sign than this of a mature and healthy
ensemble.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1551 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

The Round Dance

BYLINE: by MICHAEL COVENEY

SECTION: SECTION I; The Arts; Royal Exchange, Manchester; Pg. 15

LENGTH: 418 words


An unseemly scramble is under way to throw on productions of Schnitzler's Reigen
since the copyright expired on December 31.  The play, better known by the title
of Max Ophuls' 1950 film, La Ronde, is a catalogue of bloodless sexual
encounters in 10 scenes, one partner surviving from each coupling to the next.
Written in 1896 and published privately four years later, the playwright was
shocked by the moralistic outrage it attracted at its 1920 Berlin performance
and refused to allow further stage presentations.  The cast and director had
been arrested on an obscenity charge.

As Schnitzler died in 1931, we have had to wait 50 years for another production
-- although his estate has allowed four film versions.  First past the post is
the Royal Exchange with Charles Osborne's flat and featureless translation (next
week the RSC enters the lists, followed by BBC TV and the fringe company ideally
titled Shared Experience).

Whatever Mr Osborne has said in public about striking a blow for translators'
lib (he has abused Stoppard's re-working of Nestroy), Casper Wrede's production
offers him poor support.  Fin de Siecle Vienna is despatched in favour of a
badly conceived hotch-potch of postwar British sexual mores.

Thus the prostitute and the soldier meet by a part bench bearing the slogan
"Vote Clem" and the play proceeds, with patchy consistency, through suburban
betrayals, the swinging 1960s, a private room in a bistro (sex is conducted
under the table instead of on the required divan) and Soho low life.  The
soundtrack quotes Buddy Holly, the Beatles, Barbra Streisand, the Police.  I
suppose that the Miss Birken of Scene Nine is meant to be Jane.

None of this makes any sense whatever.  The prostitute of the first and last
scenes is, in both cases, new to the job.  So the real time of the play is as
compressed as is the Viennese society of secret assignations, sexual paranoia,
the worry of recognition, and peculiar vanity.  Each scene except the last is
punctuated by the sex act in a blackout.  But the "before" and "after" quality
of the play never emerges on this occasion.

A quality of perfunctory eroticism invades only the work of Gabrielle Drake as
the married woman, Bernice Stegers as the sumptuous actress and Cheryl Prime as
an unlikely Liverpudlian urchin.  The astringency and gossamer texture of the
writing go for nothing.  And it seems particularly obtuse to have each character
take a bow on abandoning the merry-go-round.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1552 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Elvis under the axe;
ELVIS by Albert Goldman.  Allen Lane, £9.95.  598 pages

BYLINE: ANTONY THORNCROFT

SECTION: SECTION I; The Arts; Book Review; Pg. 15

LENGTH: 425 words


In recent years there have been two public deaths which made such a tremendous
impact that most people, at least those under 45, can vividly remember where
they heard the news -- the assassination of President Kennedy and the
announcement of Elvis Presley's demise.

In Albert Goldman's compendious biography of Presley, one of the most sustained
hatchet jobs ever perpetrated by a writer, there is much to read about the
details of Presley's death -- which is attributed to drug abuse rather than a
heart attack -- and also about any number of gross aberrations which the "King"
indulged in to while away his bored existence.

But this is not just a hiss and tell expose of the decadent reality behind the
glamorous facade, of the drug addict who was appointed by Nixon a special agent
of the Bureau of Narcotics, of the biggest hero of a generation who became a
recluse, escaping from reality with a gang of buddies who supplied every passing
whimsy -- from peanut butter and jelly sandwiches flown in a thousand miles, to
young girls wrestling in white knickers.

Goldman was a Professor of English and he has a theme, the very sensible and
likely concept that coming from southern hillbillie stock not known for its
brains but sharp enough to take advantage of a situation, Presley's life and
death was an inevitable progression.  Being in the right place at the right
time, when black soul and white country were fusing into rock-and-roll, Presley
went naturally in 20 years from cheerful young punk to decadent showbiz
personality, corseted and drugged for the profitable Las Vegas appearances.  Any
other development would have been the more remarkable.  Throw in a mother
fixation, a sense of southern honour, which produced some extraordinary twists
in his attitude to women, a mysterious manager who gambled away millions while
keeping Elvis financially irresponsible, and you have the makings of a very good
read.

The book is spoilt by too much "faction"; the dressing up of imaginary scenes
into telling factual events.  The eyewitnesses probably were accurate, but there
is no need for such literary presumption.  This book is so destructive that an
"Elvis, we love you" backlash has already started, but in truth, there is no
reason why an artist and his work should not be assessed quite independently.

In fact the music, and Presley's undoubted significance in rock history, are
hardly touched on.  Instead we have a likely, sad, human biography which is much
more genuine than any number of pop hagiographies.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1553 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Penelope Keith for Haymarket rep

SECTION: SECTION I; The Arts; Pg. 15

LENGTH: 213 words


A fresh attempt to launch a repertory season in the West End is to be made by
Triumph Theatre Productions at the Haymarket Theatre.  Harold Brighouse's
Lancashire comedy Hobson's Choice opens on February 11, starring Penelope Keith
Anthony Quayle and Trevor Peacock.

A Coat of Varnish, adapted by Ronald Millar from C. P. Snow's last novel, opens
on April 1 and will play for alternate fortnights with Hobson's Choice. Anthony
Quayle will direct a cast led by Peter Barkworth.

The third play to join the repertory, on June 9, will be Shaw's Captain
Brassbound's Conversion with Penelope Keith playing Lady Cicely Waynflete.
Other members of the company are Annette Badland, Michael Bilton, Anita Carey,
Jonathan Coy and Belinda Lang.

Announcing the season, the managing director of Triumph, Duncan Weldon,
introduced Arnold Crook who has joined the company following the recent death of
his colleague Louis Michaels.  Last year's projected repertory season under the
direction of Robin Phillips collapsed shortly after its announcement, but, with
Hobson's Choice opening in Brighton on Monday, Mr Weldon is confident that a
West End management can emulate the RSC or the National with a combination of
respectable plays and star casting.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1554 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

'Fear and Loathing' in Battersea

SECTION: SECTION I; The Arts; Pg. 15

LENGTH: 68 words


Fear and Loathing in Las Vegas, by Hunter S. Thompson, is the opening production
on January 28 of a new fringe venue, the Gate at the Latchmere, in Battersea
Park Road, London.  The first floor of the Latchmere pub has been renovated by
Albion Records to make a 100-seat theatre and restuarant.  Thompson's novel,
published in 1971, has been adapted by Lou Stein, the theatre's artistic
director.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1555 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Reassessment in Mexico

SECTION: SECTION I; Editorial Comment; Pg. 16

LENGTH: 653 words


YESTERDAY'S THREAT by Mexico's President Jose Lopez Portillo to introduce
domestic petrol rationing smacks faitly of the absurd, coming as it does from
the world's fourth largest oil producer.

Yet it underlines in an eyecatching way the problems now being faced by Mexico's
expanding economy as a result of the glut in the world oil market.

Foreign debts

Like other developing countries which have been blessed with large oil deposits
Mexico has embarked on a programme of rapid economic expansion over the past few
years.  In so doing it has fallen into the trap afforded by the oil bonanza of
free and inefficient spending on an economy that was not ripe for development at
such a pace.

Mexico started out with a larger industrial base than some of these countries,
notably Nigeria and Venezuela, but perhaps for this reason, its aspirations and
its economic problems are now all the more conspicuous.

Mexico has become the most heavily indebted nation in the developing world with
total foreign debts estimated at some $64bn.  In spite of oil revenues of some
£14bn to £15bn last year its current account balance of payments deficit was a
massive $10.8bn in 1981.

This is only part of the price that must be paid in any dash for growth.  The
other is the more delicate political price of reconciling economic reality at
the end of the day with ingrained expectations of higher living standards.

Rationing

The threat of petrol rationing reflects this second part of the problem.  Even
though the domestic petrol price was doubled this month, the state oil monopoly
Pemex is still selling petrol in Mexico at a mere $1 per gallon, a price that is
at best barely profitable and one that a company as strapped for cash as Pemex
can ill afford.

Yet the latest price increase has already been greeted with considerable
dissatisfaction by the population.  In much the same way Mexican government
officials fear widespread popular resistance to any concerted measures designed
to curb growth, ease inflation (now running at 29 per cent) and reduce the
strain on the balance of payments.

For this reason no one could expect Mexico, many of whose citizens still live in
conditions of abject poverty, to do any more than tackle the backlash to its
economic aspirations in a gradual way.

Already the Government has announced plans to hold public spending unchanged in
real terms this year, cutting back oil investment and diverting more resources
to agriculture, one of the economy's weakest points.  In the process, growth is
forecast to slip to below a real rate of 7 per cent this year from 8 per cent
last.

Oil reserves

But Mexico is now extremely vulnerable to external economic factors beyond its
control.  A further drop in world oil prices would impose a still harsher strain
on its balance of payments.  Any new increase in U.S. interest rates would push
up the cost of its borrowing and encourage speculation against the peso that is
only being maintained at its present exchange rate level by dint of a fierce
domestic monetary squeeze.

There might be a temptation to panic in such circumstances, and following this
week's small $1 drop in Mexico's price for heavy crude oil, there was certainly
an element of irrationality in the talk of petrol rationing.

With its oil reserves of about 72bn barrels, Mexico certainly does not merit the
status of an economic basket case.  In a world anxious for economic growth
Mexico, managed with greater economic restraint, still deserves the support of
the international banks.

But the $20bn of gross external financing which Mexico needs in 1982 will be
more readily available if the Government maintains a firm and consistent
approach to economic readjustment.  This means, above all, containing the budget
deficit to its targeted level, after a year when it overshot by a factor of
almost two.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1556 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

The oil tax teaser

BYLINE: By Ray Dafter, Energy Editor



SECTION: Note: This table may be divided, and additional information on a
particular entry may appear on more than one screen.
SECTION I; North Sea Revenues; Pg. 16

LENGTH: 2324 words


SOME CLAMMY palms and nervous twitches can be detected in the finance
departments of North Sea oil companies.  Having had its bluff called by Sir
Geoffrey "Poker Face" Howe, the Chancellor of the Exchequer, the offshore oil
industry has been forced to declare its hand over possible tax changes.

The industry, which had long bemoaned the level and complexity of the tax
system, was as surprised as anyone when last spring, Sir Geoffrey suggested that
the companies themselves -- and anyone else interested -- should devise an
alternative structure.

Three main sets of proposals have now been submitted: one -- a blueprint for
radical change -- by the Institute for Fiscal Studies and two less-controversial
schemes by the industry itself.

The companies must now sit and wait as the Treasury scritinises the submissions.
Sir Geoffrey has promised to lay his own cards on the table in the spring
Budget.  So far he has given no hint as to whether his review of the tax system
will incorporate any of the industry's suggestions.  But the companies may be in
for a shock.

Through their representative organisations -- the UK Offshore Operators
Association (UKOOA) and the Association of British Independent Oil Exploration
Companies (Brindex) -- they have called for a general reduction in the overall
level of taxation.

They claim that present taxes will give the Government an average 85.7 per cent
share of the profits over the life of the first 25 oil fields developed in the
UK sector of the North Sea.  At the margin the tax take from a very profitable
field can be as much as 90.3 per cent, compared with 76.9 per cent in the
1975-78 period.

So, perhaps not surprisingly, companies have told the Chancellor that the
resulting lack of cash could hit future exploration and development projects,
render a number of small fields unexploitable, and lead to an early abandonment
of several existing commercial discoveries.

But, up to now, Sir Geoffrey has shown no signs that he is impressed with this
argument.  Indeed, within Whitehall there is a feelig that projects are now
being delayed by companies more because of uncertainty arising from the tax
review, rather than the severity of the tax system.

In his original invitation to the industry the Chancellor laid down guidelines
that modified proposals should produce a broadly similar yield to the present
regime.  Nothing in Britain's economic position can have altered that view.  On
the contrary, pressures for retaining the present tax levels must be growing.

The build-up of North Sea oil production is progressing more slowly than
forecast by the Government a few years ago.  The prolonged glut of world oil
supplies has put an unexpected brake on oil price rises.  There is now growing
talk within the industry of prices falling in real terms over the next few
years.  Consequently, the Treasury has had to lower its offshore taxation
estimates.

The most recent Treasury forecasts, published at the time of the Budget last
March ("Economic Progress Report," No. 131) showed that in spring 1980 the
Government was expecting oil and gas revenues in the fiscal year 1980-81 to
total £4.2bn.  By November 1980 the forecast for that year had fallen to £4.1bn.
In March, at the end of the fiscal year, the estimate had fallen again -- to
£3.84bn.

So far the forecast revenue of £5.88bn for the current 1981-82 period looks like
being achieved, or even slightly exceeded.  But this is due in part to last
year's depressed value of sterling which inflated the dollar value of North Sea
oil production.

The future trend can be gauged from the latest estimates of stockbrokers Wood,
Mackenzie which advised the UKOOA on its tax submission.  A fortnight ago the
brokers showed that under the present tax system North Sea revenues in 1983 (the
calendar year) should be no more than £9.7bn rather than the £11.5bn forecast by
the firm a year ago.  Similarly its estimate of 1984 North Sea tax has been
reduced from £14bn to £12.3bn.

All this leaves the oil companies in a quandary.  Their proposals assume that
tax rates will be reduced.  If the Government decides to accept the industry's
recommendations, but then tinkers with them to maintain the overall level of
taxation, some companies could find themselves substantially worse off.

As it was, individual companies showed considerable self-restraint in allowing
UKOOA and Brindex to be the only representatives of the industry's views.  It
was felt that the industry would have a better chance of being taken seriously
if it showed a unified front.

The fact that all the different companies could find sufficient common ground
may be evidence enough that the tax system is in need of an overhaul.  It was,
after all introduced in 1975 when the oil price was $12 a barrel, a third of the
present level.  The structure has been changed repeatedly over the past six
years -- seven times in one 18-month period -- as successive governments have
attempted to keep pace with rising prices, changing development conditions and
Treasury budgetary requirements.  Attempts to remove anomalies have frequently
spawned new problems.

Sir Antony Part, former Permanent Secretary of the Departments of Trade and
Industry and chairman of the Institute for Fiscal Studies committee which
reviewed the tax structure, describes the present system as a "ridiculous"
competition.  The Government, he says, is striving for an early injection of
revenue while the industry is seeking allowances to help in the development of
fields.

Mr Christopher Johnson, economic adviser to Lloyds Bank and another member of
the Institute's committee, is somewhat more colourful in his description.  Oil
companies and tax authorities both complain about the structure "yet both know
their way around it, like a ramshackle old country house, full of secret
passages and trapdoors," he says.

Few would deny that the present structure, based as it is on four different
taxes, is a muddle.  In grossly simplified terms the system works like this:

* First, a company pays a royalty equivalent to 12.5 per cent of the landed
value of production.  This is a tax on revenues rather than profits although it
is a payment widely accepted in the industry.  Companies look upon royalties as
a fee paid to the host Government for the extraction of natural resources.

* Second, the industry has had to pay another tax based on revenues --
Supplementary Petroleum Duty -- for the past year.  This tax, which is due to
expire at the end of June -- unless extended by the Chancellor -- is charged at
20 per cent of gross revenue less an oil allowance from each field equivalent to
about 20,000 barrels a day.

* Third, the most important revenue - raiser -- Petroleum Revenue Tax -- is also
levied on a field-by-field basis and is assessed on total revenues less royalty
payments, Supplementary Petroleum Duty, operating costs and other allowances.
At present PRT is calculated at a basic rate of 70 per cent of net revenues.

PRT is the most complicated of the bunch because of the various allowances.  For
example, companies can set against the tax the cost of exploration and appraisal
work in the field; the costs of production, transport, initial treatment and
storage of oil; and abortive exploration.  A supplement of 35 per cent of
exploration and development expenditures can also be set against the tax.

Furthermore, oil companies are provided with an "oil allowance" which gives PRT
exemption on 5m tonnes a year of production from each field.  And, to protect
small or marginally economic fields, there is a safeguard provision which
ensures that no PRT is charged on a field earning less than 30 per cent of
historic capital costs.

* Fourth, companies encounter Corporation Tax, chargeable after the other taxes
have taken their bites.  This tax is levied at a rate of 52 per cent but unlike
the other taxes it applies to the offshore operations of a company rather than
an individual field.  Companies such as British Petroleum, which operate highly
profitable fields, can thus avoid paying the top marginal tax rate of 90.3 per
cent by maintaining a programme of new field developments.

The Institute for Fiscal Studies wants to bulldoze this "ramshackle" tax
structure out of existence.  It wants to see all the existing taxes replaced
with a single Petroleum Profits Tax.  Higher rates of tax would be triggered by
predetermined profitability bands.

But oil companies question discreetly whether the Institute's system will in
practice prove as simple as it appears.  They point out that considerable
legislation would be needed.  Every field's pre-tax costs and revenues would
have to be recalculated back to the beginning.

Anomalies would probably arise as companies juggle their pre-tax costs to avoid
triggering higher tax bands.

The industry is also worried that the Institute's proposals would drive the
after-tax profitability of all fields towards a similar, modest rate of return.
The Institute's proposed profits tax would be assessed on a field-by-field
basis.  Consequently companies would be robbed of the opportunity of making big
profits on a bonanza field, sheltered by tax allowances arising from investment
in other discoveries.

Perhaps the industry has been hoist by its own petard.  For in recent years
North Sea companies have made much of the fact that the best fields have been
discovered; that what is left is largely a number of smaller reservoirs,
difficult-to-produce fields, and extensions and satellites of existing fields.

These points are amply made in the submissions of UKOOA and Brindex, both of
which propose amendments to the existing tax structure -- and a reduction in the
overall rate -- as a means of boosting investment incentive.

The association, for instance, wants to see the abolition of the Supplementary
Petroleum Duty and the automatic repayment of royalty in the case of the least
profitable fields.  It is also advocating changes to the Petroleum Revenue Tax
including new advance payment provisions (to offset the impact of ending the
duty), additional oil allowances and special treatment for potential producing
reservoirs found on the periphery of commercial fields.

UKOOA says it discarded the possibility of an entirely new tax system for three
basic reasons: the administrative complexity of such a change; the problems of
transition from one tax system to another; and "the potentially uneven effect on
different licensees."

That third and final reason explains the current nervousness of North Sea oil
companies.  They all want to pay less taxes but they are also uncomfortably
aware that in any radical change, they could end up paying considerably more.

It is not without irony that the companies have apparently opted for the "secret
passages and trapdoors" they already know, when the industry was presented with
an unprecedented opportunity to draft a simpler, more predictable tax system,
suitable for the next 20 years.  The irony is unlikely to be lost on the
Chancellor.
                        UK CONTINENTAL SHELF TAX SYSTEM
                                              1975     1976     1977     1978
ROYALTY:                             rate % 12.5     12.5     12.5     12.5
SUPPLEMENTARY PETROLEUM DUTY:        rate % -        -        -        -
  Allowance (per six months)                -        -        -        -
PETROLEUM REVENUE TAX:               rate % 45       45       45       45
                                   uplift % 75       75       75       75
  Oil allowance (per six months)             0.5mt    0.5mt    0.5mt    0.5mt
              Sageguard period              U        U        U        U
              Advance payment             % -        -        -        -
CORPORATION TAX:                     rate % 52       52       52       52
  Advance Corporation Tax                   33/67    35/65    35/65    34/66
  Interest on overdue tax          % a year  9        9        9        9
MARGINAL TAX TAKE                         % 76.9     76.9     76.9     76.9
                        UK CONTINENTAL SHELF TAX SYSTEM
                                          1979      1980      1981      Notes
ROYALTY:                         rate % 12.5      12.5      12.5      1
SUPPLEMENTARY
PETROLEUM DUTY:                  rate % -         -         20
  Allowance (per six
  months)                             - -          0.5mt    2
PETROLEUM REVENUE TAX:           rate % 60        70        70
                               uplift % 35        35        35        3
  Oil allowance
  (per six months)               0.25mt  0.25mt    0.25mt   4
              Safeguard
              period                    U         U         R         5
              Advance
              payment                 % -         -         15        6
CORPORATION TAX:                 rate % 52        52        52
  Advance
  Corporation Tax                       33/67     30/70     30/70     7
  Interest on overdue
  tax                          % a year  9        12        12
MARGINAL TAX TAKE                     % 83.2      87.4      90.3

NOTES:

1 For oil produced under the first four rounds of licences royalty is levied on
the wellhead value; subsequently royalty is levied on the tax landed value.

2 Tonnes; the amount of production exempt from taxation.

3 Relates to tax allowance for capital expenditure; ie qualifying investment is
uplifted by 75 per cent if spent before the end of 1978.

4 Tons up to the end of 1978 and tonnes from 1979; the amount of production
exempt from taxation.

5 To protect economically marginal fields, PRT is not charged if the adjusted
profit does not exceed 30 per cent of the accumulated capital investment.  U =
unrestricted; R = restricted (ie safeguards and after 150 per cent of payback
period from production start).

6 Amount of prepayment based on the previous chargeable period or the previous
but one period, whichever is the greater.

7 Proportion to be paid in advance.
         COMPOSITION OF NORTH SEA TAX REVENUES
                  (£m, current prices)
                                                 Total
         Royalties  SPD +  PRT ++ Corp. Tax *  receipts
1980-81         940      -  2,420          480     3,840
1981-82       1,200  1,850  2,210          620     5,880




* Before any set-off in respect of Advance Corporation Tax.

+ SPD = Supplementary Petroleum Duty.

++ PRT = Petroleum Revenue Tax.

Source: "Economic Progress Report No. 131," Treasury, March 1981

LANGUAGE: ENGLISH

GRAPHIC: Symbols 1 through 12, no caption

                   Copyright 1982 The Financial Times Limited


                             1557 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Reviving the inner cities

SECTION: SECTION I; Editorial Comment; Pg. 16

LENGTH: 676 words


FOR SOME years Britain's leading corporations and institutions have been playing
an expanding role in trying to stimulate and help smaller companies,
particularly in the urban areas.  They have had a slow but steady success and
one spin-off has been the creation of a number of locally based enterprise
agencies.  The largest and most influential, the London agency, recently
unveiled a package of welcome measures to extend and expand its role in
encouraging small business and innovators to start up by advising them and
putting them in contact with bankers and supportive larger firms.

Evidence

This is only one side of the picture.  It concerns primarily the private sector
and then mainly only the very largest companies which have for some time had a
keen sense both of their civic responsibility and of the long-term commercial
advantage in an improving rather than deteriorating urban environment for their
business operations.

There is a complementary side to the scene.  This is the urgent need to find and
develop as many ways as possible of harnessing private sector funds in
conjunction with public sector monies (from both local and central government),
to stimulate further the regeneration of some of the worst of the country's
inner city areas.  The clear evidence of social instability in these areas makes
radical treatment all the more necessary.

This week two groups of people are at work, quite independently, on proposals
which could have a profound effect on directing public and private sector money
into urban projects.

Attraction

One is the Treasury team drawing up the options for the Budget due in March.
The other is the group of managers from the financial institutions seconded to
Mr Michael Hesseltine, Environment Secretary, to study inner urban problems
after last year's riots.

This group is closeted in Ware, for a week of reflection following a trip to the
U.S. and to consider what lessons can be learned and recommended to the
Government.

One of the most likely results will be the group's endorsement of a system of
giving extra financial aid to urban areas along the lines of the U.S. Urban
Development Action Grants.  This channels Government cash into specific projects
in urban areas on condition that a substantial proportion of the costs have
already been committed from the private sector.

The attraction of the system is that it permits the Government to direct funds
precisely and, therefore, to choose projects most likely to generate jobs and to
stimulate further developments.  It is flexible enough to allow the Government
to provide funds on terms which might just tip the balance in an otherwise
marginal project.  Most importantly, it ensures private sector involvement from
the start and it forces local authorities and business to talk constructively
with common objectives.

The one difficulty lies in making the scheme attractive to the private sector.
Some of the largest corporations are already playing their part but most
companies are still not involved: they need a gentle nudge towards participation
at community level.

In the U.S. the nudge is the possibility of setting such contributions against
tax -- a facility which does not exist in Britain.

Incentives

This is where the planning of the details of this year's Budget is so important.
The Treasury is not unsympathetic in principle to the idea of tax deductions for
contributions to urban development and last year such an allowance was pencilled
into the Budgetary schedule.  But it was among the first casualties when the
inevitable difficulties of making the revenue and expenditure balance were
reached.

Any tax incentive would need to be carefully defined and limited to start-up
contributions for firm projects.  Given the low incidence of corporation tax and
the abnormally high level of rates often found in the worst affected areas where
the revenue base has been shrinking, part of the incentives might appropriately
take the form of rate relief.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1558 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Boots feat

SECTION: SECTION I; Men & Matters; Pg. 16

LENGTH: 346 words


Perhaps colourful is the wrong word to describe Boots Hansen, the American
oil-well firefighter who yesterday put out the 40ft flames burning since
December 21 at Taylor Woodrow Energy's Hatfield Moors drilling site in
Yorkshire.

Hansen usually wears white overalls and drives a white Cadillac -- a reaction
against the 20 years he worked for the famed Red Adaire.  "I was sick of red,"
he says.

With another Adair veteran and much-decorated wartime air force officer, Coots
Mattews, Hansen set up his own firefighting agency in Houston nearly four years
ago.

"We had both worked for Red for a long time but when we asked him for a little
piece of the action, he got mad and fired us."

That was shortly after the 55-year-old Hansen had taken part in sealing the
North Sea oil field's biggest blow-out on the Ekofisk Bravo platform.

His Boots and Coots company maintains an interest in North Sea operations where
the record for avoiding fires and blow-outs has been exemplary, he says.

Boots has five or six skilled teams ready to travel anywhere in the world at a
moment's notice.  As he was putting out the Yorkshire fire yesterday, some of
his men were dealing with a blow-out in Venezuela.

"The only way you learn how to do this job is from experience -- and the more
experience you get, the better you become at it," a Hansen staffman tells me.

No two blow-outs are exactly the same -- and the fees Hansen charges usually
reflect the degree of difficulty and danger involved.

The Yorkshire blow-out -- caused when the drill hit a small gas pocket -- would
have been brought under control sooner but for the weather and lack of
specialist equipment on site.

Hansen himself denies that taming wells earns him a fortune.  "We've got enough
money to burn up a wet mule," Coots elaborates.  And for him to indulge a
passion for raising quarter horses while his partner goes yachting in their odd
leisure moments.

How much will Boots get for answering the call to Yorkshire then?  "You can
bet," says a buddy, "he'll be treated right."

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1559 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Marginal note

SECTION: SECTION I; Men & Matters; Pg. 16

LENGTH: 170 words


Libor you will know and love as the acronym for "London Interbank Offered Rate,"
by which Euromarket loans are priced.  But Nibor?  Well, the word from Wall
Street is that ever since the Fed allowed offshore banking into the U.S. in
December, the markets were bound to throw up a new interest rate based on market
conditions in New York. And first into the act is an enterprising financial
services firm called International Reports Inc., which plans to announce a daily
Nibor rate at 11 am New York time, starting Monday.

So Nibor -- shouldn't that he Nyibor? -- it is.  Whether it will catch on is
another matter.  On the one hand, the move can be seen as part of New York's
long-running battle to wrest from London the role of the world's leading
financial centre.  But, on the other hand, the New York offshore rate is almost
identical to the Euromarket rate anyway, so why bother?  Most bankers.  I
gather, are far from confident that yet another interest rate is just what the
world needs at present.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1560 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Precondition

SECTION: SECTION I; Men & Matters; Pg. 16

LENGTH: 8 words


"Avant-garde" -- B.C. (American usage).

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1561 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Unhappy returns

SECTION: SECTION I; Men & Matters; Pg. 16

LENGTH: 179 words


Somebody somewhere is waiting for a letter from you . . .  But if the addressee
is Solidarity, that letter is unlikely to arrive.

The Polish authorities, who have already cut off the country's telephones, have
not overlooked the postal service in their attempt to extinguish the free trade
union. The International Metalworkers' Federation in Geneva has been sending its
monthly bulletin to the union's regional offices, and have passed on to me some
of the batch sent out on December 9 -- three days before martial law was
imposed.

"Not claimed," reads the rubber-stamped endorsement on one of the returned
envelopes; "not known," says another; "no longer exists" reads a still more
ominous third.  The excuses may differ, but the general drift is clear enough.

The Federation does, however, have some brighter news to report from its own
sources.  It believes that the IBM type composer which it sent to Solidarity has
been "winkled out of the Warsaw headquarters, and is not being used to produce
the daily newsheet that Warsaw Solidarity is bringing out."

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1562 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Home thoughts

SECTION: SECTION I; Men & Matters; Pg. 16

LENGTH: 146 words


It may still cost 40 per cent more to produce a car in the UK than in the rest
of Europe or Brazil, but the German chairman and managing director of Vauxhall,
Ferdinand Beickler, has found much to praise in his two years here.

"The English are less materialistic than we are," he says in an interview with
the German newspaper Die Welt. "They have a much greater talent for coping with
the recession and other stress situations.

"I greatly admire this attitude," Beickler adds.  "It may sound euphoric but the
people here have been suffering for several years and we would perhaps not
always be so patient as the English."

His view is that the state of British industry is linked with managerial
deficiencies.  "It's a question of personnel management," Beickler notes.
"People want to be led but they have to believe in the leadership and its
sincerity."

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1563 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Wong answer

SECTION: SECTION I; Men & Matters; Pg. 16

LENGTH: 84 words


Congratulations to Jenny Wong of Hendon on the only all-correct answer to the
Christmas quiz. Post office permitting, she will soon be cheering herself with
the promised brandy while filling the pages of her ritzy FT diary.  Last year's
winner, Norman Garrett of Middles-brough, looked to be cruising confidently home
until he inexplicably failed to answer the final question.  Consolation prizes
to him, and to two other near-misses, E. V. McWilliam of Gerrards Cross and R.
Lucas of Harrow.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1564 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

A guide for the perplexed

BYLINE: By Samuel Brittan

SECTION: SECTION I; Economic Viewpoint; Pg. 17

LENGTH: 1604 words


IT IS a safe bet that all the millions of words written on subjects like.
"Keynesianism" and "monetarism" have left most people more perplexed than they
were at the beginning.

The proliferation of sub-divisions such as "New Cambridge" or "New Keynesian"
and the rise of a school which stresses Money GDP rather than the money supply
itself have all been intended to clarify matters.  But until the relation
between these ideas is more clearly understood the common reaction will be that
of Goethe to Hegel's metaphysics: "I am still puzzled, but on a higher level."

It might therefore be worth setting out a four-fold classification system that I
have found useful myself.  It is a deliberate oversimplification of many
different positions and nuances.

The four following schools of thought relate entirely to "macroeconomic" (or
"financial") policy -- ie, the kinds of things such as Budgets and monetary and
exchange rate policy with which Finance Ministers and their critics are
concerned.  It leaves out a host of other, probably more important, topics.

1 -- The Keynesian school.  This was the post-war orthodoxy and is still the
most familiar.  It is one on which most of the senior economists who influenced
policy until recently were brought up; and it is also the instinctive attitude
of most British politicians, journalists and industrialists who pronounce on
economic affairs.  For there is no one more infested with theory than the down
to earth person who claims to go by sheer common sense.

The basic doctrine is that the injection of spending power into the economy, via
the Budget or the monetary system or exchange rate management, has its main
effects on output and employment -- that is the real economy.  Keynesians
usually also believe -- although it is not quite a necessary consequence of the
above proposition -- that without an active financial policy to maintain real
spending power, which they call "demand management," the economy may never grow
at its potential capacity rate.

British Keynesians usually believe that inflation is produced by forces largely
independent of demand and has to be either tolerated or tackled by "incomes
policy."

The Keynesian position is a crystallisation of some of the views held by Lord
Keynes for some of his career.

The Cambridge Economic Policy Group is a sub-group of Keynesians who beleve that
a major boost to demand and real growth is possible, but only provided that it
is backed by intense across-the-board import controls.

2 -- The counter-revolutionaries.  This is the name I use for want of a better,
for the school that has arisen in reaction to traditional post-war Keynesianism.
The word "monetarist" is misleading here, even when it is not merely a term of
abuse.  "Classical" or "neo-classical" would be more accurate, but would turn
off the non-specialist.

The counter-revolutionaries argue that, in contrast to the post-war wisdom, the
main ultimate impact of demand management is on the price level, not output and
employment.  Its classic political statement was not by Mrs Thatcher, but by
James Callaghan in a perhaps temporary conversion at the 1976 Labour Conference.
He said that the option of "spending your way" into higher employment by cutting
taxes and boosting spending no longer existed -- if it ever had.

Some counter-revolutionaries would accept that there may be a temporary
trade-off between inflation and unemployment, but even that is highly volatile.
The rate of unemployment at which the economy settles at any stable rate of
inflation, is known as the NAIRU, the non-accelerating inflation rate of
unemployment.

A counter-revolutionary does not have to believe that this rate is established
by some well-working highly competitive market system.  The NAIRU is simply that
which emerges from existing real world markets with all their distortions and
labour monopolies.

If demand management or financial policy cannot achieve chosen levels of output
and employment, what can it achieve?  It can control inflation over the medium
term.  It can also provide a long stop against the kind of depression which
occurred in the 1930s, dut to a collapse of spending in money terms.  It can
also provide some reassurance that wage restraint will indeed price people into
jobs.

For all these purposes the need is to achieve as stable as possible a growth of
total spending in money terms.

Professor James Meade who has advocated a Money GDP target and an incomes policy
aimed at promoting employment, is to my mind a counter-revolutionary.  For he
accepts that the attempt to maintain full employment by demand management with
existing wage-fixing institutions risks, in the words of his own forthcoming
stagflation study, leading "to an explosive inflationary situation with the
threat of not merely rapid, but ever-rising inflation," which would eventually
force any Government to slam down the brakes.

His own description of himself as "New Keynesian" is misleading as he has so
clearly crossed the Rubicon on this key analytical issue.  The differences
between Meade and some other counter-revolutionaries are of personal style,
details and above all over the other policies needed to accompany a national
cash outlay target.

A counter-revolutionary has no need at all to resign himself to present-day
unemployment levels, but he will want to shift the emphasis to direct measures
to improve markets which are working badly, above all the labour market.

3.  The quantity theorists.  These are a sub-group of the counter -
revolutionaries, who believe that the quantity of money is the main long-run
influence on total spending, ie Money GDP, and, therefore, on the price level.

Quantity theorists stress that "inflation is a monetary phenomenon" but they do
not have to believe that there is a hard and fast dividing line between money
and other financial assets or that the quantity of money is at all easy to
control under a paper money system.  Quantity theorists, who have been on the
scene for several centuries, are well aware that nearly all past examples of
debasing the coinage or resort to the printing press derive from the exigencies
of governments which cannot raise enough tax revenue to meet their bills.

4.The technical monetarists.  These are a further sub-division inside the camp
of the quantity theorists who believe that there are established techniques for
both measuring and they claim instead that so long as some key monetary assets,
such as bank reserves plus cash are strictly regulated, other kinds of money or
near-money can be left to look after themselves.

It is almost superfluous to add that this fourth school is Friedman's own.  But
it may be helpful to add that Friedmanite monetarists ultimately want to
regulate Money GDP just as much as James Meade or any of the other
counter-revolutionaries.  But because they believe that the money supply can be
readily controlled and that it bears a stable relation to Money GDP, they do not
bother to mention the latter especially in their more popular presentations.

The distinction between the two main schools -- Keynesian and
counter-revolutionary -- is not nearly as sharp in the U.S. as it is in Britain.
Indeed a whole American industry has grown up in an attempt to derive Keynesian
conclusions from counter - revolutionary premises.  For instance, many American
Keynesians adopt a "consensus model" in which they supposedly accept the
fundamental contention of the counter-revolutionaries about the NAIRU and the
long-run impact of demand management on prices.  But they believe that the long
run can be very long and that financial policy can do little to bring it forward
by controlling money.  Sometimes influencing expectations.

There are many macroeconomic differences which cut across all the listed schools
of thought.  In my own case, I moved more than a decade ago from the first to
somewhere between the second and third schools.  But some beliefs have carried
over from one to the other, such as a stress on the longer term, an emphasis on
expectations, a suspicion of fine-tuning and a preference for rules over
discretion.

Formerly they were expressed in support for a "National Plan" designed to
influence expectations about real demand.  Now they are expressed in support for
a medium-term financial strategy to influence expectations about monetary
demand.  (In both phases, there have been opponents who regard a week in
economics as a long time and the Governor's discretion as the best kind of
economic plan.)

Views on "incomes policy" of course cut across the main groups listed in this
article.  There are Keynesians who do not believe an incomes policy practical or
desirable; and there are counter-revolutionaries and monetarists who urge such
policies strongly.

There is, however, this degree of connection.  Counter-revolutionaries who
advocate pay controls do so to promote employment, especially in the longer term
and are attracted to the Meade or Layard concepts.  Keynesians on the other hand
think of them basically as an anti-inflationary device and tend to settle for
familiar wage and price controls, or social contracts with the TUC.

Yet having hinted at some of the complications and hybrids, and the unmentioned
further sub-divisions, I still think that the four main divisions laid down here
do help to map out the territory.  If, however, you want a conversation-stopper
when faced with economic questions at cocktail parties you might try "I am not a
monetarist, only an anti anti-monetarist."

LANGUAGE: ENGLISH

GRAPHIC: Illustration, no caption, Brana Radovic

                   Copyright 1982 The Financial Times Limited


                             1565 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Paris-Bonn ties under strain

BYLINE: By Jonathan Carr in Bonn

SECTION: SECTION I; Lombard; Pg. 17

LENGTH: 701 words


IT WAS encouraging to learn from Chancellor Helmut Schmidt in his New Year's
message that the "close and friendly relations" between West Germany and France
have been "further secured" since President Francois Mitterrand came to
office.Without this assurance it would have been easy to suppose that exactly
the reverse was true.

For example, those with fairly long memories will recall how closely Herr
Schmidt and ex-President Giscard d'Estaing co-ordinated their stand after the
Soviet invasion of Afghanistan.  There hasn't been much sign of that over the
Polish crisis.  On the contrary the Germans complain that French reluctance
delayed an EEC Foreign Ministers meeting on the subject (a claim which seems to
have aroused some official wrath in Paris).

Looking a bit further back, there are Herr Schmidt and M Giscard privately
agreeing to set up a European Monetary System (EMS) and going ahead despite the
worst that the British (and the EEC farm ministers) could throw at them.
Nowadays French ideas for development of the European Currency Unit and for a
two-tier interest rate system for Europe bring scorn from the Bonn finance
ministry and the Bundesbank alike -- a fairly rare display of unity from those
two institutions these days.

When the Germans were looking for support last year for their scheme for a
"European Union" (Bonn never likes taking such initiatives on its own), it was
to Rome they had to turn -- not Paris.  The very un-diplomatic comments made on
this idea by a senior French diplomat in Bonn would certainly have made German
ears burn -- although admittedly these remarks did not amount to outright
rejection.

Perhaps none of that is important enough to undermine what Herr Schmidt calls
the "further securing" of Bonn-Paris ties.  Nor, possibly, are the continuing
differences over the Common Agriculture Policy (CAP) or the outbursts of the
French Foreign Minister, M. Claude Cheysson -- for example on the EEC's Middle
East declaration.  "M. Cheysson has always had a sharp tongue -- and no doubt he
always will," said a Bonn government official ruefully.

But even if we dismiss all this simply as a series of storms in a teacup (or a
wine glass or beer mug as you prefer), it is still hard not to be gloomy about
immediate prospects for Franco-German ties.  The reasons are economic in origin,
but they have important political and psychological implications.

During the Giscard era the French pursued a course aimed above all at defeating
inflation.  They did so not just because they saw inflation as a "basic cause"
of unemployment but because they felt success here was the key to greater
international competitiveness, above all against the stability-conscious
Germans.  This, after all, was one of the main attractions of the EMS for M.
Giscard.  The discipline needed to maintain the parity of the Franc within the
system would, he felt, help provide an alibi for unpopular stability measures at
home.

This policy was not as successful as the French hoped.  But so long as it was
being followed, the idea of catching up with, and perhaps even surpassing, the
Germans economically did not seem absurd.  Many Germans themselves took the
challenge very seriously.  A mutual respect seemed to grow during those years
which went well beyond the Schmidt-Giscard connection.

Now the worm is turning.  Herr Schmidt politely notes that German economic
policy lies about mid-way between the monetarists in Washington and the
Keynesians in Paris, rather than saying outright he deplores both.  A member of
his cabinet is much more trenchant, calling the French economic course "simply
disastrous."

The (pretty neutral) OECD in its latest economic outlook sees the French
inflation rate rising this year to close to 14 per cent and the German one
falling to just over 4 per cent, while the French current account deficit
increases nearly $7bn and the Germans go back into surplus.  The consequences
for the EMS need no underlining.  But more worrying are the political
implications as the divergence of economic performance becomes clear -- worrying
not just for Bonn and Paris but for those who have to live with both within the
EEC.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1566 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Resistance to raising the price of steel in Europe

BYLINE: J. Doran, Boss Trucks and Equipment, Grovebury Road, Leighton Buzzard,
Beds.

SECTION: SECTION I; Letters to the Editor; Pg. 17

LENGTH: 475 words


From the Purchasing Director, Boss Trucks and Equipment

Sir, -- May I be allowed to reply to the letters from Mr Ian MacGregor, British
Steel Corporation chairman (December 21) and Mr David Powis, director of the
National Association of Drop Forgers and Stampers?

Mr MacGregor makes an unconvincing case for raising steel prices by quoting
rises in energy costs since 1975 and comparing steel prices in January 1982 with
1979 prices.

If we are to trade in statistics, let us at least deal in reasonably current
examples.  A typical parcel of 100 tonnes of mild steel plate in July 1981 was
available from stockholder below BSC list price at £195/tonne delivered.  This
month that same steel will cost £249/tonne from BSC or £262 from stockholder --
respectively 28 per cent and 34 per cent higher than six months ago.  Mills
against mills prices are 20 per cent higher than December.

Stockholders cannot be left out of the picture because the Commission's cartel
rules mentioned by Mr Powis effectively prevent stockholders from negotiating
and passing on to their customers the benefit of rebates and discounts which
they previously obtained.

Of course if will be difficult for steel consumers, including small drop
forgers, to resist steel price rises, but that is no reason for not doing it.
If Mr Powis, in attempting to run with the hare and hunt with the hounds,
rereads my earlier letter he will see that I said that we would help our
suppliers to resist steel price rises.  I hope other steel users will do the
same.

If the Commission and producers can form a cartel, it must be equally acceptable
for users to make their resistance in a collective manner.  Governments are well
aware that users wield more votes than producers.

It is a strange form of economics which allows a government-backed cartel to
impose swingeing increases just at the time when we are all hoping to climb out
of the recession by being increasingly competitive.

I am all in favour of remunerating efficient producers well but price increases
have to be earned and justified not only by reference to cost increases but also
in accordance with market demands.  I am very afraid that the imposition of
these increases will merely slow down BSC's resolve to achieve the status of an
efficient competitive producer and hasten the day when its customers can no
longer afford to deal with it.  Why should users pay dearly to cushion European
steel producers' losses?

Both Mr MacGregor and Mr Powis evade the central issue which is that BSC must
produce and sell steel at a price which gives it a viable business and enables
their customers to sell steel products competitively both inside and outside the
EEC.

This they are plainly failing to do.  What is the use of profitable highly
priced steel if there are no customers?

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1567 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

The Invergordon closure

BYLINE: E. C. S. Macpherson, Nedd Lodge, Drumbeg, Lairg, Sutherland.

SECTION: SECTION I; Letters to the Editor; Pg. 17

LENGTH: 186 words


From Mr E. Macpherson

Sir, -- There is prima facie evidence that the decision to let the Invergordon
smelter close is based on muddled economic thinking.  Although it seems clear
that British Aluminium (and its shareholders) will be much better off as a
result of the deal, someone needs to set down clearly what the estimated effect
of the deal is on the Government's overall finances, i.e. the estimated
cost/benefit to the taxpayer of the deal.

The figures quoted for the subsidy to electricity prices for the smelter over
the years are large, but it is not clear whether these are full costs or
marginal costs.  Other questions need to be answered, such as: will the closure
increase the profits of North of Scotland Hydroelectricity Board?  What happens
to the now surplus generating capacity of NSHEB?  How will this affect NSHEB's
pricing policy?  How many jobs will be lost at NSHEB?  What is the loss of
profit to British Rail?  How many jobs will be lost at British Rail?  What
alternatives were considered?

The economics of such a deal should be a matter of record for taxpayers.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1568 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Success in selling to Japan

BYLINE: D. C. Jackson, Oldbury, Warley, West Midlands.

SECTION: SECTION I; Letters to the Editor; Pg. 17

LENGTH: 297 words


From the Deputy Chairman Croda International

Sir, -- Success by the West in selling in Japan is, if anything, even more
important than meeting Japanese competition here, if the one-way trade balance
is to be overcome.

The key is to have a product with a competitive edge over the products of
similar Japanese businesses -- be it in price, style, novelty, specification,
technology or any combination of these matters. Next it is necessary to find a
Japanese interest which will benefit along with that of the exporter; once
found, the self interest of the Japanese starts to work for you.

Although helpful, it is not essential to have a subsidiary in Japan; the same
effect can be achieved at least to some extent through the use of a Japanese
trading company, carefully selected to avoid conflicting interests.  A trading
company, once the decision to work with you is taken, will saturate the European
end of the partnership with service, but it is essential to invest senior
management time into becoming known in Japan and to go to some pains to adopt
the courtesies of the country in meetings, eating together and the exchange of
gifts, tasteful yet of modest cost.

The UK, above all European countries, is well placed to penetrate the Japanese
scene, given the right product and the will, because of the enormous advantage
of the acceptance of English as the second language of Japan and to some extent
even the first language in business circles.

It is not impossible to overcome the non-tariff barriers, the preference of the
Japanese for buying Japanese and the different idea of an acceptable rate of
return.  It takes no more than the commitment which the Japanese themselves
demonstrated when they started their export drives into the West.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1569 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Playing our cards badly

BYLINE: A. M. Allies, British Mercantile Agency, Sidcup House, 12-18 Station
Road, Sidcup, Kent.

SECTION: SECTION I; Letters to the Editor; Pg. 17

LENGTH: 252 words


From the General Manager, Consumer Collection Division, British Mercantile
Agency

Sir, -- I am in agreement with the spirit of Mr S. Thomson's letter (December
17) in that I feel that the facility with which credit cards can be obtained is
in many cases inadvisable and in some cases an invitation to commit fraud.

The attraction to the credit card company of obtaining new customers is obvious.
The interest rates charged are very high, and in cases where the credit card is
issued in conjunction with a specific firm or group of companies, then the
issuing group benefits both ways in that it obtains normal commercial profit on
the sale of goods and a significant profit on the provision of credit.

Having said all that, credit was instituted in the 14th Century as a means of
expanding business, and used correctly can benefit us all.  I feel that the
issuers of credit facilities (with specific reference to the general public) are
possibly most remiss in the lack of education of the customers in the correct
use of the credit facility).  I frequently have to deal with situations where
debtors quite simply do not understand the situation in relation to their credit
account.

It seems to me that more onus should be placed on the provider of credit to
ensure that his customer or potential customer understands fully the provisions
of the credit agreement or contract, the true costs of the credit given and the
possible consequences if the debtor does not adhere to the contract.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1570 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Lloyd's extraordinary general meeting

BYLINE: N. Parker, 56, Curzon Street, W1.

SECTION: SECTION I; Letters to the Editor; Pg. 17

LENGTH: 139 words


From Mr N. Parker

Sir, -- A rail strike threatens to interfere with the extraordinary general
meeting of Lloyd's on January 13 by preventing members outside London from
attending when neither proxies nor postal votes will be acceptable.  Those
affected should write to the chairman of Lloyd's demanding a change of date,
thus providing him with the opportunity to disprove rumours that he discourages
attendance at general meetings.

The chairman could, however, permanently counter such rumours by the simple
expedient of conforming to normtl business practice by allowing votes by post or
proxy rather than insisting upon personal attendance by voters.  Indeed he has
already set a precedent for such voting procedure and merely by following his
own precedent he could have avoided the present ridiculous situation.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1571 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Strike threat at Ford recedes

BYLINE: By Ivo Dawnay, Labour Staff, in London

SECTION: SECTION I; Pg. 18

LENGTH: 392 words


UNION leaders representing Ford's 54,000 manual workers in the UK claimed last
night that a majority of the workforce have endorsed their recommendation to
accept the company's pay and conditions package.

Mass meetings at 15 plants yesterday, representing a total of 22,500 workers,
agreed to the 7.4 per cent offer while six plants, accounting for 15,210
workers, rejected a settlement.

Votes taken early this morning by three night shifts at Dagenham, near London,
as well as polls due later today from the Halewood transmission shop near
Liverpool and the Langley truck division, account for a further 11,350 workers.

But union leaders said last night that the trend was that acceptance of the
offer was virtually certain.

Mr Ron Todd, chief negotiator for Ford's 13 unions, said that the traditional
method of assessing the outcome of the poll by allocating one vote to each
plant, already showed a majority for acceptance.

Earlier in the day, 10,000 workers at Halewood's body and assembly plants voted
by a majority of more than 3 to 1 to oppose the deal, adding to the initial
unease of the union leadership.

But afternoon polls of day-shift workers at Dagenham's assembly, engine and
foundry plants showed a substantial majority for acceptance, though the body
plant returned a split vote with no clear decision either way.

The unions' negotiating team will reconvene in London tomorrow to announce the
result and prepare for a final meeting with the management next Wednesday at
which the complete details of the package will be hammered out.

Unofficial strike action at Halewood continued yesterday with shop stewards
warning that they would not call off their action until the official
announcement of the result is made.

Mr Steve Broadbent, a Halewood body plant union official, said that the men
would not call off their action without holding a fresh vote, possibly at a mass
meeting on Friday.

Some 1,660 Ford workers at Swansea also went on unofficial strike yesterday
after voting by a large majority to throw out the deal, but the men are expected
to accept a majority verdict and return to work on Friday.

Acceptance of Ford's package will give workers a 7.4 per cent rise on basic
rates and supplements, taking average earnings for mid-grades to between £128.44
($245.64) and £134.33.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1572 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Labour and unions set scene for party truce

BYLINE: BY JOHN LLOYD, LABOUR CORRESPONDENT

SECTION: SECTION I; Pg. 18

LENGTH: 380 words


TOP-LEVEL talks succeeded yesterday in producing a convincing display of unity
and the bones of a possibly lasting truce between left and right in the UK
Labour Party.

A 1 1/2-day conference in Hertfordshire called by the Trade Unions for Labour
Victory (TULV) organisation heard Mr Michael Foot, the party leader, discuss the
agreements reached as "historic."

Later, Mr Foot said that the meeting had been the most successful of its kind
since the general election.  "It prepares the way for our victory in the next
election."

Mr David Basnett, general secretary of the General and Municipal Workers Union
and chairman of the TULV - who has guided the trade unions into a dominant role
within the party - made it clear that the agreement reached meant that the
status quo of constitutional issues and on leadership and deputy leadership
would remain in place at least until 1984.

"We have a leader and we have a deputy leader and I don't think that will be
disturbed.  We have had debates over constitutional issues.  I don't think they
will occur again."

Mr Tony Benn, the leading left-wing radical MP, narrowly beaten in the last
deputy leadership election by Mr Denis Healey, would not confirm last night that
he would not stand again.  However union leaders were convinced he would not
challenge Mr Healey in the immediate future - an impression which Mr Healey
appeared to share.

Mr Healey said: "The unanimous feeling was that the wrangles must stop.  This is
very much a turning point in our affairs.  The Labour movement is pulling
together while the SDP (Social Democratic Party) is pulling apart.

Mr Foot said that his impression Mr Benn would not stand again had been
fortified by the meeting.  Certainly Mr Benn has been left in no doubt that he
can expect minimal union support if he does decide to stand once more.

Both union and party representatives were, in their own words, "euphoric" over
the outcome, and all sides pledged themselves repeatedly to unity in the fight
against the Conservative government, led by Mrs Margaret Thatcher.

It is expected that the affiliated unions - who organise some 7m workers - will
raise their political levy from a level of around 1.4p per member per week to
about 3p in the next year or so.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1573 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Singapore calls for air fares freedom

BYLINE: By Kevin Rafferty in Singapore

SECTION: SECTION I; Pg. 18

LENGTH: 406 words


SINGAPORE AIRLINES yesterday appealed for airlines to be able to set their own
fares in accordance with market conditions.

Mr J. Y. M. Pillay, the airline's chairman' accused the regulatory authorities
which set fares of "spitting in the wind and flying in the face of commercial
logic."

Under Mr Pillay's direction, Singapore Airlines (SIA) has grown from the small
national airline of a tiny island country of 2.4m people to one of the top 15
international carriers.

It has so far refused to join the International Air Transport Assocition (Iata)
because, Mr Pillay said yesterday, originally "it tried to regulate the size of
sandwiches and other standards of service." SIA has seen many of its own
policies, like free drinks and headsets, adopted by carriers previously
restricted by Iata rules.

SIA had been singled out for discrimination, Mr Pillay said, "We would like to
see a clean market with transparency of fares.  We can always hold our own
because we believe we have a superior product."

Mr Pillay's remarks came a few hours before West Germany air authorities in Bonn
met Lufthansa and other airlines to try to bring order to fares between West
Germany and Asia.

In a big row at the end of last year the German authorities had unprecedentedly
limited SIA's new winner schedules amid accusations against the Singapore
carrier.

Eventually the argument as settled by SIA promising to clean up the fares
market, if all other airlines also abided by the published tariffs.  "We will
keep our side of the bargain," Mr Pillay said.  "The authorities in Germany have
now got to get everyone to stay clean." He added that Germany had been "putting
the squeeze on us for no reason than we were providing stiff competition for
Lufthansa."

SIA also faces claims in the U.S. that it has indulged in irregular
price-cutting.  "Our prices are certainly not the lowest in the market," Mr
Pillay said.  "We are not interested in selling fares below our costs because
that is suicidal.  Americans were trying to make a case that we are being
subsidised.  That is nonsense.

But he contrasted the treatment in the U.S. with that in West Germany.  "In
America they say what the charges are openly and lay then on the table, so that
we can answer them.  Things are not done behind the scenes as they were in
Germany where we were subject to a whispering campapign and could only guess
what was being whispered."

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1574 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

The struggle to Ward off RTZ

SECTION: SECTION I; The Lex Column; Pg. 18

LENGTH: 56 words


Tuesday's late rally in gilt-edged continued into yesterday, while the equity
market was positively lively, with the FT 30-Share Index rising 10 points
between 10 o'clock and the close.  But there was a rather frothy look about much
of the trading in equities, which seemed to be mixture of bear closing and
takeover speculation.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1575 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

RTZ/Ward

SECTION: SECTION I; The Lex Column; Pg. 18

LENGTH: 369 words


RTZ's 190p a share bid for Thomas W Ward has looked increasingly unlikely to
succeed, and yesterday, with three weeks of the offer left to run, the mining
group hoisted its offer to 225p cash plus 5.2p of Ward dividend, or a
convertible alternative.  It was able to pick up a fair amount of shares in the
market at 230p, cum-dividend, and now speaks for something over 20 per cent of
Ward.  The new bid is "virtually certainly final," which in terms of the
Takeover Code is so much hot air; it seems probable that RTZ is simply holding
back the announcement that these are indeed the final terms until the moment of
maximum theatrical effect.

The increased offer values Ward on roughly 15 1/2 times historic fully-taxed
earnings, or 12 times its current year forecast - more importantly it represents
a premium of nearly 80 per cent over the market price ruling before hostilities
began.  Ward is still fighting hard, though: it has argued all along that its
Tunnel holding was worth £55m or 94p a share, and is sniffy about the earnings
multiple implied for the rest of its business.  But this residual arithmetic
works against Ward in the end, for if the Tunnel stake really is worth 94p a
share, the offer for the rest of Ward has been raised by 40 per cent.

Many institutions would no doubt rather invest in an independent Ward than see
their interests swallowed up in a giant like RTZ.  Some may be unhappy about
supporting a bid which has its ultimate origins in RTZ's need to find UK
earnings to supply tax-efficient cover for its dividend.  But at this price
level, misgivings will probably be outweighed by hard cash, especially since an
independent Ward would probably renew its bid for Tunnel, presumably at or above
the 550p a share price tag it has put on its own Tunnel stake.This could not do
the Ward share price much good in the short term.

The present position, so profitable for shareholders in both Ward and Tunnel,
would never have been reached if the two chairman had been able to resolve their
companies' unstable relationship without recourse to a contested takeover bid.
As it is, the bill for their quarrel is being spread thinly among the legions of
RTZ shareholders.

LANGUAGE: ENGLISH

GRAPHIC: Graph, no caption

                   Copyright 1982 The Financial Times Limited


                             1576 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

U.S. bonds

SECTION: SECTION I; The Lex Column; Pg. 18

LENGTH: 260 words


The New York bond market has established little sense of direction so far this
year and yesterday's Delphic pronouncement by the U.S. Treasury Secretary failed
as usual to inspire much confidence.  Prices slipped on Tuesday following the
New Year message of Dr Henry Kaufman and the publication of weaker than expected
M1-B figures. With the yield on 10 year government bonds still wobbling above 14
per cent, corporate treasurers have not been tempted to seek new funding.

So the market is still waiting for a real test of the level of demand.  Last
night's $3 1/4bn auction of seven year notes - all of it new money - could
provide some guidance but, until the backlog of corporate offerings starts to
unwind, institutions may prefer to sit it out.

Typically enough, the Federal Reserve is giving nothing away.  It stopped adding
reserves on Tuesday as unspect Christmas money was already flowing back into the
banking system and holding the Federal Funds rate close to 13 per cent.
Yesterday afternoon, as Fed Funds slipped below 12 per cent, it began draining
funds from the market.

Mr Regan, by contrast, is making his views very clear.  The suggestion of higher
taxes later played down by the White House, may lend some credence to his
forecast that the budget deficit will remain below $100bn in fiscal 1983 and
1984.  But no such pledge is given for the current year when the prospect of
overcrowding in the debt market could again jeopardise the corporate sector's
attempt to restructure balance sheets on a more long-term basis.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1577 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Tax havens

SECTION: SECTION I; The Lex Column; Pg. 18

LENGTH: 318 words


Companies have now had a month to examine the Inland Revenue's proposed tax
haven legislation -- and they don't like what they see one bit.  The legislation
is a somewhat tardy reaction to the dismantling of exchange controls in October,
1979.  Since then it has not been beyond the wit of GB plc to set up a
subsidiary in Liechtenstein, to hold its spare $1m of cash and accumulate the
comforting interest receipts.The maximum tax rate in Liechtenstein is an even
more comforting 15 per cent.

Such activity was difficult under exchange controls, when approval for exporting
cash was required from the Bank of England and there were profit repatriation
requirements.  No one knows how much money has been channelled from the UK to
tax havens in the last two years, but judging from the big holes in the CSO
statistics, the amount could run into billions.  In theory the Revenue already
has the legislation to tax interest receivable by UK residents, regardless of
where it arises.  But it clearly has little confidence in the efficacy of its
powers - which explains the tough nature of the new proposals.

These include a tighter definition of company residence and rules for taxing any
company controlled from the UK that is situated in countries with low effective
rates of tax.  The main exception is when the subsidiary is engaged in genuine
trading activities.  So tax inspectors will once again be forced to make
judgements on commercial practice, while the actual legislation contains enough
obscure words and phrases to keep the courts happy for 20 years.  Among the most
vulnerable may be captive insurance companies, although any financial
institution may find itself in difficulties explaining the difference between
trading and collecting interest.  The present intention is to introduce the
legislation in the next Budget - but it looks as if formidable opposition is
building up.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1578 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Mexico scheme for offshore banking given cool reception

BYLINE: BY WILLIAM CHISLETT IN MEXICO CITY

SECTION: SECTION I; Pg. 18

LENGTH: 302 words


INTERNATIONAL banks gave a cool welcome yesterday to Mexico's plan to create an
offshore banking centre.

Under a new law, which came into force this week, international banks are
allowed to set up offshore banking units in Mexico to deal exclusively with
extraterritorial activities.

This means they can get deposits only from people outside Mexico and make loans
in the same category.  Previously, foreign national banks were only allowed to
maintain representative offices in Mexico.

Banks are unenthusiastic about the change because there are already plenty of
other offshore banking centres in the area like Panama, the Bahamas and, most
recently, New York.

U.S. and European bankers in Mexico City said that communications were better in
other centres and costs were lower.

With the exception of Citibank, the 123 international banks currently in Mexico
are still barred from competing for peso deposits or engaging in peso lending.

Mexico's commercial banks, which play a powerful part in the economy because of
their strong links with industry, are fiercely opposed to any competition from
international banks

The Government first mooted the idea of creating an offshore banking centre in
Mexico three years ago, at the same time that Mexican banks began their drive to
establish branches abroad.

The Mexican Government effectively lobbied on the banks' behalf, since it was
initially feared that unless Mexico showed greater flexibility and offered
reciprocal measures, Mexican banks might be barred from setting up abroad.

As it turned out, the top four Mexican banks had no trouble in establishing
offices in London, New York and Los Angeles

Now, three years later, the law has finally been approved, but, meanwhile,
Mexico has been eclipsed by other countries.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1579 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Fuel ration threat to Mexicans

BYLINE: BY OUR MEXICO CITY CORRESPONDENT

SECTION: SECTION I; Pg. 18

LENGTH: 300 words


MEXICO, the world's fourth-largest oil producer, has threatened to ration petrol
at home if soaring consumption there does not decline.

President Jose Lopez Portillo said the country was reaching the "absurd" stage
where its refineries could not keep up with demand. Some petroleum products are
having to be imported.  He also said the country ran the risk of exhausting oil
reserves.

Petrol consumption in Mexico has risen sharply since 1979.  The economy,
meanwhile, has been growing by an average 8 per cent.

The President's threat to ration petrol came two weeks after Pemex, the state
oil concern, increased the price of its ordinary grade petrol - by 115 per cent
to just over $1 a gallon - for the first time in five years.

The Mexican Government had no alternative but to increase domestic petrol prices
in the face of a sharp drop in revenue from oil exports because of a world oil
glut, massive foreign borrowing to make up the shortfall in revenue, and the
impending state expenditure to keep up the momentum of the high growth needed to
counter social pressures.

The move is bound to intensify the already high rate of inflation, which reached
28.7 per cent in 1981.

Pemex's foreign debt is estimated at $8bn out of a total public sector external
debt of $48.7bn.

Observers consider it unlikely that the Government will go to the extreme of
rationing petrol at home.  The oil industry is a highly nationalistic element in
Mexico, but the President's remarks underline the Government's growing alarm at
the situation.

Last week, the Government announced a wage ceiling for 1982 of almost 34 per
cent - 5 per cent in real terms - to compensate workers for the petrol price
increase.  However, some unions are pushing for wage increases nearer 40 per
cent.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1580 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Quest Automation makes loss

BYLINE: By Dominic Lawson in London

SECTION: SECTION I; Pg. 18

LENGTH: 148 words


QUEST AUTOMATION, Europe's largest independent manufacturer of computer-aided
design systems, yesterday reported a first-half pre-tax loss of almost £1.5m
($2.85m).  The figure for the half-year to August 31, which excludes doubled
research expenditure of £901,000, is sharply higher than the loss of £347,000
for the comparable 1980 period. The company said it expected to be in the red
over the full year.  Last year it reported pre-tax profits of £813,000.

Mr Tony Ebel, managing director, blamed the results on falling demand for the
company's larger systems.  He said that Quest would continue to "plough money
into fixed assets and expand our product range."

Quest Automation obtained full London Stock Exchange quotation last November.
Four months earlier the National Enterprise Board (now part of the British
Technology Group) put nearly £2.9m into Quest.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1581 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Strike threat to Channel ferries

BYLINE: BY IVO DAWNAY AND ANDREW FISHER IN LONDON

SECTION: SECTION I; Pg. 18

LENGTH: 240 words


TRADE UNION officials representing 1,200 Sealink UK officers last night called
for an immediate all-out strike at the company's nine domestic and continental
ferry ports in response to a management decision to withdraw services at
Newhaven and Harwich.

Ferry services operated by other companies should not be affected.

The action is likely to halt all Sealink UK sailings from midnight tonight.

The decision to call the strike was taken unanimously at a four-hour meeting of
port representatives held at the London offices of the Merchant Navy and Airline
Officers' Association yesterday.

Following the meeting, Mr Eric Nevin, general secretary of the union, said that
he saw no alternative to the stoppage.

"There seems little doubt that Sealink has decided to embark on a drastic
programme of reducing shipping services and intends to pursue this with scant
regard for the interests of its officers," he said.

Mr Nevin added that the action would only be called off if the company withdrew
its notices of redundancy to the officers at Newhaven and Harwich and agreed to
the union conducting a thorough examination of the company's future plans,
possibly under the scrutiny of an independent arbitrator.

The union's port representatives left London last night to organise the strike.

The strike call comes as Sealink UK, like other major ferry operators, is trying
to pull itself back into profitability.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1582 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Begin talks with Romanian envoy

BYLINE: BY DAVID LENNON IN TEL AVIV

SECTION: SECTION I; Pg. 18

LENGTH: 191 words


MR MENAHEM BEGIN, the Israeli Prime Minister, talked at length yesterday with a
special envoy of the Romanian President Nicolae Ceausescu, amid rumours of a
possible attempt by Bucharest to act as a demiator in the Middle East.

President Ceausescu played a similar role in the secret negotiations which
preceded the historic peace initiatives of President Anwar Sadat of Egypt in
1977.

The Prime Minister's office denied emphatically yesterday that the special
envoy, Mr Vacile Pungan, had carried any offer of Romanian mediation in the
Arab-Israel dispute.

Romania is the only East European communist country which still retains
diplomatic relations with Israel, and is sometimes regarded as acting on behalf
of the Soviet Union.

Mr Pungan delivered a verbal message from President Ceausescu to Mr Begin
relating to international and regional situations and bilateral ties.  No
details were released.

The Prime Minister's spokesman said that Mr Begin had given the envoy "some
documents connected with the situation in the region" to take back to the
Romanian president.  Mr Pungan last visited Israel in September 1979.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1583 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Mannesmann in talks on Siberian pipeline

SECTION: SECTION I; Pg. 18

LENGTH: 163 words

DATELINE: BONN


Mannesmann, the West German steel and pipe manufacturer, said yesterday that it
had opened negotiations on a prospective deal to sell the Soviet Union 1m tonnes
of steel pipe for the pipeline planned to pump pas from Siberia to Western
Europe.

At the same time bankers in Frankfurt reported that the Soviet Union had made a
new approach to West German banks for a credit of $300m to help to finance
payments to West German suppliers of equipment for the project.

Moscow has been seeking a credit since the main contracts were awarded last
September.  German banks have been reluctant to go ahead, although the deal has
not been officially refused.

Mannesmann has supplied the Soviet Union with large-diameter steel pipe before
and, with Creusot-Loire of France, is general contractor to supply 22 gas
compressor stations along the pipeline.

The project has been criticised by the U.S. as likely to make its European
allies too dependent on the Soviet Union.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1584 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

SECTION: SECTION I; Overseas News; Pg. 4

LENGTH: 244 words


Participants in the seismic surveys in China's offshore waters have been told
that they will be contacted before the end of this months with further proposals
on offshore development, writes Colina MacDougall.  Peking is expected to ask
for a declaration of interest within the next two weeks, and interested
companies will be asked within the month for tenders. A model contract has been
prepared.

Industry leaders said bidding cannot start until foreign companies know details
such as the share-out of crude and the role of the Chinese Government in
planning and decision making.  Terms are likely to be strict, since the Chinese
have been advised by Statoil, the tough Norwegian Government offshore oil
organisation; Graph, Participants in the seismic surveys in China's offshore
waters have been told that they will be contacted before the end of this month
with further proposals on offshore development, writes Colina MacDougall.
Peking is expected to ask for a declaration of interest within the next two
weeks, and interested companies will be asked within the month for tenders.  A
model contract has been prepared.

Industry leaders said bidding cannot start until foreign companies know details
such as the share-out of crude and the role of the Chinese Government in
planning and decision making.  Terms are likely to be strict, since the Chinese
have been advised by Statoil, the tough Norwegian Government offshore oil
organisation.

LANGUAGE: ENGLISH

GRAPHIC: Map, no caption

                   Copyright 1982 The Financial Times Limited


                             1585 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

U.S. drops fraud probe of General Dynamics

BYLINE: BY OUR NEW YORK STAFF

SECTION: SECTION II; Companies and Markets; Pg. 19

LENGTH: 265 words


THE U.S. Justice Department has informed General Dynamics, one of the country's
leading defence contractors, that it is dropping an investigation into charges
that it submitted fraudulent reimbursement claims to the navy at the height of
the company's bitter cost overrun dispute in the 1970s on submarine building.

General Dynamics, which has denied the allegation, said from its St Louis
headquarters yesterday that it was pleased but not surprised by the decision.
The Justice Department said the Grand Jury investigation had taken so long
because of its complexity.

The charges arose out of General Dynamics' claim for reimbursement from the navy
for the cost of putting right certain faults in a series of nuclear submarines
it built for the service in the early 1970.

The navy offers a form of insurance against extra costs, but maintained that it
did not apply in this case because the overruns were due to poor management.

The dispute, involving $843m was finally settled in 1978 when General Dynamics
took a $359m loss in a compromise settlement.

But it was accused at the time of submitting fraudulently large claims - a
potential criminal offence.

The company and the navy have since settled most of their differences and
General Dynamics' Electric Boat division, is once again receiving navy submarine
contracts after having been excluded from one round of orders last year.

The Navy Department is expected to announce today the award of a contract for
its ninth Trident class nuclear submarine to Electric Boat, which is based in
Connecticut.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1586 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Cedel in link with Chemical Bank

BYLINE: By William Hall in London

SECTION: SECTION II; Companies and Markets; Pg. 19

LENGTH: 187 words


CHEMICAL BANK'S international cash management system, Chemlink, has linked up
with Cedel, the Luxembourg-based Eurobond clearing house, in a move which will
give its customers access to Cedel's clearing and reporting facilities.

Chemlink clients will be able to input sales and purchases of Eurobonds and give
settlement instructions, and obtain details of all transactions not settled or
cancelled, balances held in cash and securities transactions in suspense.

Chemical Bank is one of the leaders in introducing computer technology to
international correspondent banking services and 1,400 banks around the world
are linked into its Chemlink (s.m.s.) handles about 50,000 wire transfers a
month totalling $100bn.

The deal will give Cedel much better penetration of the U.S. market, especially
among regional banks.

Chemical Bank says its aim is to develop Chemlink into the "first interface
point between customers for financial products and all their transaction
processing and reporting needs."

Banks which have previously dealt with Cedel via telex are now likely to use the
Chemlink system.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1587 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Milan bourse suspends falling Bastogi shares

BYLINE: BY RUPERT CORNWELL IN ROME

SECTION: SECTION II; Companies and Markets; Pg. 19

LENGTH: 314 words


MILAN stock exchange authorities last night suspended trading in Bastogi, one of
Italy's oldest established financial groups, after its shares had plunged an
unprecedented 17 per cent in yesterday's market session.

Amid rumours that debts and losses would oblige the group to call in a special
government-appointed commissioner to handle its affairs, Bastogi shares dropped
from L246 to L204 in normal trading hours yesterday. The price lost a further L4
in after-hours unofficial business.

The run on the group was such that trading volume rose from the normal daily
level of between 200,000 and 300,000 shares to over 2m yesterday.

Later Sig Luigi Santamaria, Bastogi's chairman, issued a statement denying that
the group had applied for special administration.  But a board meeting has been
called for January 12, at which a capital write-down may be decided, following
further losses in the first 11 months of 1981.

Yesterday's developments are the climax of an increasingly difficult period for
Bastogi since its heyday a decade ago as one of the lynchpins of the private
sector in Italy.  Heavily damaged by the troubles of the chamical industry in
recent years, the group has reported frequent losses.

For 1980, the deficit reached L13.8bn ($11.5m), almost double that of the
previous year.  Although sales reached L1,100bn, total indebtedness climbed to
L335bn at the end of 1980 from L264bn a year earlier.

Nor have efforts to launch a credible restructuring programme been helped by
uncertainty and argument over the exact ownership of the concern.

To reduce its financial burdens, Bastogi has been forced to sell parts of its
substantial property empire, and last summer floated on the bourse 25 per cent
of the shares of Cogefar, its successful construction engineering offshoot.  In
1980 it also raised its capital to L247bn from L198bn.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1588 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Goodrich defies FTC on bid for Shamrock

BYLINE: By Paul Betts in New York

SECTION: SECTION II; Companies and Markets; Pg. 19

LENGTH: 149 words


B. F. GOODRICH, the U.S. tyre company, has gone ahead with its $131m acquisition
of the plastics subsidiary of Diamong Shamrock, a diversified energy company, in
spite of a declaration by the Federal Trade Commission (FTC) that the deal would
violate federal ant-trust laws.

The FTC, the government agency responsible for enforcing anti-trust laws, said
that if the transaction was carried out, it would take legal steps aimed at the
divestiture of all Shamrock assets acquired by Goodrich.

Goodrich and Shamrock said in a joint statement that they believed the
transaction was lawful.  They added that they would vigorously contest the FTC
complaint.

Goodrich said, however, that if litigation resulted in its being required to
divest any of the acquired assets, it believed it could sell them to a third
party.  If it could not do so, Shamrock had agreed to repurchase them.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1589 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Bond markets seek viable level

BYLINE: BY PETER MONTAGNON, EUROMARKETS CORRESPONDENT, IN LONDON

SECTION: SECTION II; Companies and Markets; Pg. 19

LENGTH: 270 words


FIXED RATE dollar Eurobonds started firmer yesterday but again turned weaker
during the afternoon as the New York bond market softened ahead of last night's
auction of seven-year U.S. Treasury bonds.

There were still some signs of swapping from Eurobonds into cheaper U.S.
domestic issues and Yankee bonds, although this activity was not on the scale
seen on Tuesday after the sharp price falls in the New York market.

Dealers said both the U.S. bond market and the Eurobond market are still trying
to find a viable trading range for the start of the year.  As yet there has been
little news to give impetus to a trend in either direction.

There were no new issues in the dollar sector yesterday, but in Germany, where
D-Mark foreign bonds were slightly firmer on balance, a new DM 185m, two-tranche
issue was launched for the European Coal and Steel Community through Deutsche
Bank.

One DM 125m tranche is for five years and the other DM 60m is for 12 years, but
both are priced at par with a 9 3/4 per cent coupon.

In Switzerland, where secondary market prices fell despite the weaker dollar,
the Italian state electric concern ENEL is arranging a SwFr 100m, two-tranche,
10-year issue through Banque Gutzwiller, Kurz, Bungener and Credit Commercial de
France (Suisse).

The bonds will be offered either on a fixed-rate basis with conditions to be set
during the next few days or at a floating rate set 1/4 per cent above six months
Libor on Swiss francs.  The minimum coupon has been set at 10 per cent initially
but will drop to six per cent after the first six months of the issue's life.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1590 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Ward rejects new offer from RTZ

BYLINE: BY DUNCAN CAMPBELL-SMITH

SECTION: SECTION II; Companies and Markets; Pg. 19

LENGTH: 271 words


RIO TINTO-ZINC, Britains largest mining group, has increased the terms of its
seven-week-old bid for Thos W. Ward, the UK industrial holding company.  Ward
rejected the new terms as "still clearly inadequate."

Ward owns 42 per cent of Tunnel Holdings, the cement manufacturer.  A successful
takeover by RTZ, which already holds nearly 9 per cent of Tunnel, could leave
the mining group with control of about 20 per cent of the UK cement market.

RTZ is offering convertible loan stock or a 225p cash alternative for each of
Ward's shares, which last night valued the company at £130m or £131m (about
$250m) respectively, against the £111m value of RTZ's initial bid.  RTZ's 9 1/2
per cent 1995/2000 loan stock closed down 1/2 at 97.

The offer is also increased to included the final dividend of 5.2p per share
already recommended by Ward's board and worth an additional £3m.

This gives the new offer an effective per share price of 230p

Under Takeover Panel rules, RTZ is now allowed to buy in the market at up to
230p.  Sir Alistair Frame, RTZ's chief executive, confirmed that it had bought
"a fairly large number" during the day to add to its existing 15.4 per cent
stake in Ward.  RTZ's own shares closed down 3p at 427p.

The new bid will remain open until January 26.  Sir Alistair described it as
"more than generous" and added that it was "virtually certain" to be RTZ's last
offer.

RTZ reminded shareholders yesterday that Tunnel had publicly supported the bid
for Ward and said Tunnel had further reaffirmed "its conviction that a take-over
of Tunnel by Ward would be highly undesirable."

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1591 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Pension funds to review Habitat bid

BYLINE: By John Moore in London

SECTION: SECTION II; Companies and Markets; Pg. 19

LENGTH: 143 words


UK PENSION FUND investors who are angry over a £117.6m ($223m) takeover bid made
by Habitat, the home furnishings group, for Mothercare, the specialist retail
chain which sells goods aimed at mothers and babies, have formed a special
"case" committee to review the bid.

The institutions are annoyed that Habitat has embarked on an ambitious
"growth-by acquisition" programme shortly after seeking a public quotation on
the London stock market in October. They argue that they invested in a growth
stock and that their investment could be diluted by Habitat's taking over
Mothercare.

The Prudential Insurance Company, in a separate initiative, had meetings with Mr
Terence Conran, the chairman of Habitat, yesterday.  The Pru stressed that what
is happening is just an extension of our normal policy of getting to know
companies we invest in."

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1592 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Fujitsu plans Y50bn issue

BYLINE: By Our Financial Staff

SECTION: SECTION II; Companies and Markets; Pg. 19

LENGTH: 90 words


FUJITSU, Japans largest computer concern, plans to raise about Y50bn ($227m)
through public issue of 80m new shares. The price for the Y50 nominal shares has
yet to be fixed.

The company, which has links with ICL of the UK as well as Siemens of West
Germany and Amdahl of the U.S., said that 30m of the shares would be issued as
European depositary receipts (EDRs), with each EDR representing 1,000 shares.
The proceeds from the issue would be put to its Y60bn capital spending plan for
the financial year beginning in April.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1593 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Interco ahead at 9 months

BYLINE: By Our Financial Staff

SECTION: SECTION II; Companies and Markets; Pg. 19

LENGTH: 143 words


INTERCO, one of the largest U.S. manufacturers and retailers of clothing and
footwear, felt the effects of inflation and recession in its third quarter.
Earnings for the period eased 5.4 per cent, from $33m to $31.12m, despite an 18
per cent upturn in sales from $606.9m to $717m.

Nevertheless, nine-month profits of the St Louis-based group, which is also a
diversified general merchandise retailer and furniture manufacturer, were still
higher than for the corresponding period of 1980.  Net earnings totalled
$88.81m, while sale advanced by 19 per cent to $2.07bn from $1.74bn.

At the per-share level, nine-month earnings equalled $5.42, against $5.25
previously, with the third quarter contributing $1.90 against $2.02.

Results for both the 1981 periods include returns from Broyhill Furniture,
acquired by the group in December 1980.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1594 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

U.S. Shoe sees improvement for year

BYLINE: By Our Financial Staff

SECTION: SECTION II; Companies and Markets; Pg. 19

LENGTH: 127 words


ANNUAL earnings per share of U.S. Shoe for fiscal 1981-82 will be "well ahead"
of last year's $4.31, although only as a result of the strength of the first
nine months.  A moderate decline in fourth-quarter profit from the $2.07 a share
of 1980-81 is forecast.

The last quarter of 1980, which produced a record result for a three-month
period, included an extra week of sales, generating earnings of 10 cents a
share, plus 9 cents from a favourable Lifo stock adjustment.

The company said retail sales in the latest two months, primarily in the Casual
Corner women's clothing division, were lower than planned

However fourth-quarter returns should benefit from a much lower tax rate because
of a gift of land and buildings to Xavier University.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1595 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Cinema group profit record

BYLINE: By Our Financial Staff

SECTION: SECTION II; Companies and Markets; Pg. 19

LENGTH: 71 words


A MAINTAINED rate of growth has enabled General Cinema to turn in record profits
for 1981.  The group, which is both the largest independent soft drinks bottler
and the largest motion picture exhibitor in the U.S., has lifted annual earnings
by 10 per cent, from $29.9m or $2.72 a share to $44.27m or $3.90 a share.

Fourth-quarter earnings were $13.9m or $1.25 a share against $7.5m or 68 cents a
share previously.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1596 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Further growth in profits and turnover at Amatil

BYLINE: BY GRAEME JOHNSON IN SYDNEY

SECTION: SECTION II; Companies and Markets; International Companies and Finance;
Pg. 20

LENGTH: 223 words


AMATIL, the diversified tobacco, food and drinks group in which BAT Industries
of the UK has a stake of some 40 per cent, lifted earnings by 16.1 per cent to
A$36.2m (US$41m) in the year to October 31.

The dividend total is held at 20 cents a share with an unchanged 10 cent final
on capital increased by a one-for-five scrip issue last year. A further
one-for-five scrip issue is proposed but the new shares will not rank for the
final dividend.

Turnover advanced from A$1.15bn to A$1.32bn, and pretax earnings jumped by 30.1
per cent from A$48.2m to A$62.7m but tax, up from A$16.8m to A$25.9m cut deeply
into net earnings.  Depreciation absorbed A$18.2m against A$14.8m, interest
payments A$19.7m against A$15.1m, and minority interests A$0.6m against A$0.15m.
Earnings were struck before an extraordinary loss of A$6.1m compared with
A$2.31m in 1979-80.

Record results from the tobacco and beverage divisions mainly accounted for the
strong pre-tax performance.  Both sections lifted sales, market share and
profitability.  Results from the meat and pastoral divisions were poor, but the
printing were poor, but the printing and packaging division earned significantly
more.

The results include the 70 per cent owned Fibre Container which recently
announced an increase in earnings from A$536,000 to A$1.8m.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1597 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Singapore property group ahead

BYLINE: By Georgie Lee in Singapore

SECTION: SECTION II; Companies and Markets; International Companies and Finance;
Pg. 20

LENGTH: 164 words


CITY DEVELOPMENTS, a major local property developer associated with the Hong
Leong group, raised pre-tax profits for the year ended October 31 by 32 per cent
to S$26.3m (U.S.$12.8m) and net profits by 16 per cent to S$15.27m.

It also announced rights and scrip issues both of one share for every three held
with the rights priced at S$1.80.

A gross dividend of 20 cents a share is proposed on capital of 124.99m shares
against 20 cents on 101.24m shares last year.

The rights and bonus issues will lift issued capital to 208.32m shares and
provide about S$75m in additional funds.  Certain major shareholders have agreed
to buy 54.22 per cent, or 22.56m, of the rights shares.

The company forecast higher profits for the current year and a dividend of at
least 20 cents a share.

King's Hotel, its 74.64 per cent owned subsidiary, reported pre-tax profit of
S$6.4m and net of S$3.7m for the year ended October and proposed a gross
dividend of 7.5 per cent.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1598 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Raunaq Singh in shipping move

BYLINE: BY K. K. SHARMA IN NEW DELHI

SECTION: SECTION II; Companies and Markets; International Companies and Finance;
Pg. 20

LENGTH: 132 words


THE RAUNAQ SINGH group has announced that it will raise Eurocurrency loans to
finance the purchase of two ships costing Rs 200m ($22m) which will form the
basis for a new company, Raunaq Shipping Lines.

Mr Raunaq Singh, the group chairman, said the Government had approved the
proposals which will help the company to diversify. About 10 per cent of the
purchase price will be met from internal resources.

The group is to buy two vessels of 30,000 dwt each.  These will be owned by the
group's main company, Bharat Steel Tubes, which will lease them to Raunaq
Shipping Lines.

Mr Singh said the group has embarked on an expansion and diversification
programme which involves establishing its first three ventures abroad.  Two will
be in Indonesia and the third in Singapore.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1599 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Top Singapore groups lift stock market value 30%

BYLINE: BY KEVIN RAFFERTY IN SINGAPORE

SECTION: SECTION II; Companies and Markets; International Companies and Finance;
Pg. 20

LENGTH: 287 words


THE AGGREGATE market capitalisation of the 100 biggest companies quoted on the
Singapore stock market rose by 30 per cent in 1981 to top S$50bn (U.S.$24.5bn)
by the end of the year.  Ten companiese had a market capitalisation of more than
S$1bn, compared to seven the previous year, according to research by Business
Times.

Overseas-Chinese Banking Corporation led the market with capitalisation of more
than S$3.4bn and banks took five places in the top ten.  Development Bank of
Singapore was ranked third, United Overseas Bank Fourth, Malayan Banking seventh
and Overseas Union Bank tenth.

Although plantation companies fared badly because of the recession and falling
commodity prices, Sime Darby remained in second position.  Malaysia Mining
Corporation, the worlds largest tin mining company, also managed to climb from
eighth to fifth place by market capitalisation thanks to its acquisitiopn in the
year of Malayan Tin Dredging.  On the other hand, Straits Trading fell from
third place to ninth, and Consolidated Plantations dropped out of the top ten to
11th.

Five of the top 10 are based in Malaysia; Sime Darby, Malaysia Mining, Malayan
United Industries (in sixth place), Malayan Banking, and Genting, the casino
group which acquired three rubber companies (in eighth place).  The five
Singapore-based companies in the top 10 were the big four banks and Straits
Trading.

One of the fastest climbers in 1981 was Promet, the shipbuilding and engineering
company which rose from 80th at the end of 1980 to 12th place.

The growth of the market capitalisation of the top 100 companies outpaced the
rise in the market.  The Straits Times Industrial Index rose by 18.6 per cent
over the year.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1600 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Saga Petroleum offshoot in need of extra capital

BYLINE: BY FAY GJESTER IN OSLO

SECTION: SECTION II; Companies and Markets; International Companies and Finance;
Pg. 21

LENGTH: 281 words


SAGA PETROLEUM, Norway's largest private enterprise oil company, could soon be
forced to provide substantial amounts of new equity for its loss-making
petrochemical offshoot, Saga Petrokjemi.

Three other Norwegian companies which have minority stakes in the company have
refused to put more money in to Petrokjemi because of the poor outlook for
petrochemicals.

Additional capital is needed because creditors who provided the company with a
$75m loan some time ago stipulated that a certain ratio must always be
maintained between capital and total debt.  Petrokjemi lost NKr 110m ($19m) in
1981.

The three minority partners who are now refusing to put more cash into
Petrokjemi are Dyno Industrier, a manufacturer of plastics, chemicals and
explosives, and two metallurgical firms, Hafslund and the state-owned Ardal og
Sunndal Verk.

A year ago, all three increased their stakes in the company from 8 per cent to
14.7 per cent each, but declined Saga Petroleum's offer to withdraw from the
company entirely, a move which would have left them each with a one-third share.

Saga Petroleum apparently is willing to provide fresh capital in proportion to
its present 56 per cent shareholding in Petrokjemi, but has yet to agree to put
up the additional funds.

Petrokjemi, which has a present capital of NKr 500m, is responsible for
operating three polyolefin plants near Rafnes, in east Norway, which it owns
jointly with Statoil, Norway's State oil company, and Norsk Hydro, Norway's
largest industrial group.

The plants are part of a petrochemical complex built in the second half of the
1970s to utilise natural gas liquids from Norway's Ekofisk field.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1601 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Swiss banks told to disclose more

BYLINE: By John Wicks in Zurich

SECTION: SECTION II; Companies and Markets; International Companies and Finance;
Pg. 21

LENGTH: 220 words


SWISS BANKS can no longer cover losses from unpublished reserves without
revealing this in their profit-and-loss accounts.  The Federal Banking
Commission rescinding a circular it had issued in 1975, contends that the
earlier practice had been interpreted too liberally by some banks and must now
stop.

The circular had laid down that it was generally forbidden to carry out
compensatory bookings between income and expenditure positions, but made an
exception in the case of loss coverage and the creation of contingency reserves.
Banks could, like other companies, off-set losses with unpublished reserves and
provisions and with current income.

In recent years, however, the number of cases in which losses have gone
unrecorded in a bank's annual accounts, following the use of hidden reserves,
have steadily increased.  The most notable instance was that of Swiss Volksbank,
which in November disclosed that it had set aside a total of some SwFr 140m
($77.3m) from unpublished reserves in 1980 and 1981 against "loss risks" in
connection with forward trading silver.

In a letter to the Swiss Bankers' Association and individual banks, the Banking
Commission suggests that in future any liquidation of unpublished reserves
should figure in the profit-and-loss account under "miscellaneous" items.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1602 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Montefibre on recovery course

BYLINE: BY JAMES BUXTON IN ROME

SECTION: SECTION II; Companies and Markets; International Companies and Finance;
Pg. 21

LENGTH: 185 words


MONTEFIBRE, the synthetic fibres concern which is controlled by the Montedison
chemical group, closed 1981 technically at break-even for accounting purposes.
Earlier last year a small operating profit had been forecast.

At that time it was not expected that the operating profit would be sufficient
to cover depreciation, nor the company's debt servicing burden, estimated at
about L30bn ($5m) for 1981.  Now the company expects to make an operating profit
in 1982.  It has not made a profit since 1974.

Montefibre thus appears to be on course for the recovery forecast in the rescue
plan for the company drawn up in 1979.  Following years of heavy losses, during
which the parent company Montedison has had to provide a total of L560bn to
cover its losses, its capital was increased partly through the help of a
consortium of banks and its debts were consolidated.

The rescue plan, which included provisions for industrial restructuring,
envisaged the stabilisation of the company by 1982.  Its debt was expected to
fall to L385bn by the end of the year from L609bn at the end of 1980.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1603 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Exports boost electrical arm of Empain

BYLINE: By David White in Paris

SECTION: SECTION II; Companies and Markets; International Companies and Finance;
Pg. 21

LENGTH: 216 words


JEUMONT-SCHNEIDER, the electrical engineering arm of the Empain-Schneider group,
has announced that its 1981 results will show a sharp improvement, based on a
big rise in export orders.

The company said that net earnings, after more than doubling the year before to
FFr 52m $9.1m), would show a "clear progression."

In spite of having transferred its FFr 500m-a-year cable division to a joint
venture controlled by Thomson-Brandt, Jeumont-Schneider produced turnover
figures in line with the previous year's sales of FFr 3bn.  On a comparable
basis, this represented an increase of 17 per cent.

New orders reached FFr 3.3bn -- an increase of 30 per cent on an equivalent
basis.  Export orders soared by 68 per cent to FFr 1.26bn.  The company said
that its expanding electronics activities now accounted for half its total
activity.

The statement confirms the relative strength of this part of the
Empain-Schneider group, which is in the throes of a Government-inspired
reorganisation.  The reorganisation affects the group's steel, machine tool,
shipbuilding and nuclear activities.

* Pernod Ricard has increased its interim dividend to FFr 7.50 a share from FFr
7.00.  Last month it was wrongly reported that the French drinks group had cut
the 1981 interim payment.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1604 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Sharp advance at Naarden

BYLINE: By Charles Batchelor in Amsterdam

SECTION: SECTION II; Companies and Markets; International Companies and Finance;
Pg. 21

LENGTH: 71 words


NAARDEN INTERNATIONAL, the Dutch flavours and fragrances group, increased net
profits to more than Fl 12m ($4.8m) in 1981 from Fl 7.1m the year before.
Turnover increased to more than Fl 500m ($202m) compared with Fl 468m in 1980.

In the first six months of 1981 Naarden reported net profits more than doubled
to Fl 8.4m on turnover of Fl 294m.  Much of this improvement was attributed to
currency fluctuations.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1605 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Demag order intake rises

BYLINE: By Our Financial Staff

SECTION: SECTION II; Companies and Markets; International Companies and Finance;
Pg. 21

LENGTH: 107 words


MANNESMANN - DEMAG, a subsidiary of the Mannesmann group of steel, pipemaking
and heavy industrial companies, says its order inflow totalled DM3.7bn ($1.4bn)
in 1981, up 6 per cent from 1980. Order inflow for industrial installations was
boosted by contracts with the U.S. and the Soviet Union.

On standard products business, "pleasing" foreign orders failed to fully make up
from a decline in domestic orders.

Looking to 1982, Demag predicts that domestic business will pick up in the
second half of the year.  The company produces metal processing equipment,
mining and construction equipment, and plastic forming machinery.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1606 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Better second half lifts McCorquodale

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 22

LENGTH: 518 words


FOLLOWING A better second half taxable profits of McCorquodale and Co, the
worldwide specialist printer, finished the year to September 30 1981 slightly
higher at £5.01m, compared with £4.9m.

After six months they were down from £2.7m to £2.34m but in his interim
statement Mr Alastair McCorquodale, the chairman, said he felt confident that
with the growing strength of the overseas operations group profits for the full
year would be close to those for 1979-80.

Commenting on the full year results, which he describes as "reasonable" in view
of the climate which prevailed throughout the period, the chairman points out
that the group's overseas activities continued to grow and that their successes
played a major part in protecting the group as a whole from the severe recession
in the UK.

Group turnover for the 12 months rose by £10m to £90.74m with associates
contributing £6.11m, compared with £4.32m.

Overseas trading profits before interest came through at £2.41m, against £1.65m,
a rise of 46 per cent.  However, UK trading profits before interest fell by 7
per cent to £3.98m (£4.3m).

The pre-tax surplus was struck after higher interest charges of £1.55m (£1.19m)
and included investment income of £159,000, against £136,000, and a share of
profits of associates which improved from £1.13m to £1.29m.

Tax took more at £1.02m (£706,000)

Stated earnings per 50p share declined from 26.06p to 24.5p but the total
dividend is being increased from 7.89p net to 8p -- the final is the same at
5.25p.

The directors say that the decision some years ago to increase the size of the
group's overseas activities is now beginning to bear fruit and that they will
continue to search for new specialist growth opportunities both at home and
overseas.

* comment

McCorquodale's 2.3 per cent advance at the pre-tax level is substantially a
vindication of overseas expansion, aided by currency movements.  Trading profits
increased by 46 per cent abroad, which marginally outweighed a 7 per cent drop
in the UK.  Profits in the U.S. reached 10 per cent of the group total and are
still rising; the Falconer cheque-printing operation finally broke into
worthwhile profits, complemented by a contribution from Kentucky Litho, which is
now trading more vigorously after a lack-lustre start.  At home, McCorquodale
gathered in a satisfactory return on its 1980 investment in closure costs
(mainly related to type-setting).  Having since closed a packaging plant, cut
down on wire and cable equipment, and withdrawn from book-printing at
Newton-le-Willows, the group should achieve greater loss eliminations in 1982.
In the past year, selling prices have not kept pace with input cost, so the
ability to sustain UK margins this year may need further productivity gains;
1981's improvements may not be too easy to reproduce.  At 136p, up 6p, the
shares trade at just under nine times fully taxed earnings.  Well underpinned by
a yield of 8.8 per cent, the price assumes that demand for cheques will continue
to resist the encroachment of electronic banking.

LANGUAGE: ENGLISH

GRAPHIC: Picture, Mr Alastair McCorquodale, the chairman of McCorquodale and
Co., who described the results for the year ended September 30, 1981, as
"reasonable."

                   Copyright 1982 The Financial Times Limited


                             1607 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Brown & Tawse at £1.36m

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 22

LENGTH: 394 words


A REVERSAL from interest payable of £389,000 to interest receiveable of £97,000
brought taxable profits of Brown and Tawse to £1.36m for the first half to
September 30 1981 compared with £1.03m last time, after operating profits fell
from £1.42m to £1.26m.  Sales dropped by £2.81m to £23.69m.

The interim dividend of this steel and tube stockholder and engineer is being
maintained at 1.4p net per 25p share -- last year a total of 6.4p was paid on
taxable profits of £1.57m.  Earnings per share for the six months are given as
6.3p (4.8p)

Mr S. Douglas Rae, chairman, says that demand for steel and tube products has
remained weak, but there are some signs of a modest recovery.

The directors fully expect the improvement in group profits will be continued
during the second half of the year, he adds.

After tax of £705,000 (£535,000) and preference dividends of £2,000 (same),
attributable profits emerged at £649,000 (£493,000).  Dividends absorb £145,000
(£144,000) leaving retained profits of £504,000 (£349,000).

* comment

The sharp interim recovery at Brown and Tawse stems almost entirely from past
cost-cutting, particularly on the sale of the plant hire fleet which eliminates
the losses of some £150,000 in the second half last year.  But profits could
well double this time to take the group a fair way along the recovery path to a
fully taxed p/e of 9.3 at 140p, up 10p yesterday.  Much of the impetus will come
from plant sales, particularly exports of hydraulic breakers, which should
stimulate the contribution from the non-stockholding division to about £700,000
against just £29,000.  More importanly, the steel industry has pushed through
two price increases since October and these appear to be sticking.  Volume has
risen in anticipation of these rises, if not by very much, and demand should
remain quite firm ahead of the smaller price increases planed for April and
July.Their aggregate effect will almost certainly lift the group's working
capital requirement (the turn-round to interest receivable has had a significant
say in the pre-tax upturn) but the converse should be a significant stock
appreciation.There is scope, too, for a dividend improvement this year; the
[TEXT ILLEGIBLE] yield is 6.6 per cent which would go to 7.6 per cent if the net
final is hoisted to 6p per share.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1608 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Malaysiam tin set for USM

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 22

LENGTH: 360 words


Malaysiam Tin, whose shares were suspended on the Stock Exchange last April
pending approval of a reverse takeover by two property companies owned by Mr R.
W. Moore, is being introduced to the Unlisted Securities Market.

Following the expiration of its Malaysian tin mining leases in 1980, Malaysiam's
trading ceased.  Its income since then has come solely from cash deposits of
£104,000 at March 31, 1981 and the group's holding of Lonrho shares, reduced
during the current year from 189,000 to 139,000.  Pre-tax profit in the year to
March 1981 was £43,000.

Mr Roland "Tiny" Rowland, chief executive of Lonrho, sold his 19.5 per cent
stake in Malaysiam and resigned as a director last spring at about the same time
as Mr Moore bought a 21 per cent interest.

The acquisitions of R. W. Moore (Developments) and Elmforest (Properties), which
were first announced in April, were approved by Malaysiam shareholders last
month.

The two companies specialise in small residential developments in the higher
price ranges in the West Midlands, but are also expanding into commercial
development.  Combined turnover has grown from £281,000 in 1976 to £538,000 in
the 15 months to March 1981.  Rental income over the same period has risen from
£363 to £103,000, and pre-tax profit from £28,000 to £92,000.

The balance sheet at March 31 shows net tangible assets of £318,000 after bank
overdrafts of £56,000 and loans of £20,000.  Development properties are valued
at £376,000, but a valuation in November 1981 put the value of the group's
properties at £744,000.

A pro-forma balance sheet at March 31, 1981 shows the combined net tangible
assets of Malaysian and the two property companies at £404,000 before the
property revaluation.

The consideration for the acquisitions was 700,000 shares of Malaysiam, 54 per
cent of those issued, plus £30,000 cash for Elmhurst.

The shares of Malaysiam stood at 65p when dealings were suspended on the Stock
Exchange last April 30.  Dealings on the USM are expected to begin on January
11.

The Introduction has been arranged by stockbrokers Margetts and Addenbrooke,
East, Newton.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1609 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Akroyd & Smithers aims for futures involvement

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 22

LENGTH: 208 words


IN THEIR statement accompanying the accounts for the year ended September 25
1981 the joint chairmen of stockjobbers Akroyd and Smithers say they are
determined to involve the company in the new London International Financial
Futures Exchange (LIFFE) which is due to open in the Autumn of this year.

The joint chairman, Mr Brian Peppiatt and Mr Timothy Jones, say two seats have
been purchased and point out that growth in the number of contracts traded in
the Financial Futures Markets in the U.S. had been "extraordinary" with the
volume of business often substantially greater than in the traditional market.

As reported on November 20 the group's pre-tax profits for the year were £6.87m
(£20.55m) before extraordinary debits of £1.02m (nil).  The consolidated balance
sheet shows current assets of £965.11m (£1.14bn), including bull positions of
£267.8m (£426.38m), and bank balances and cash £11.11m (£20.08m).

Current liabilities stood at £938.97m (£1.12bn), including bear positions of
£322.48m (£409.39m).  Movement in net liquid funds shows decrease in bank
balances £8.82m (£14.99m increase) and decrease in bank loans £5.64m (£28.26m
increase).  Meeting: Austin Friars House, EC, February 4, 12.30 pm.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1610 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Legal and General new annual business hits £102m

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 22

LENGTH: 622 words


RECORD NEW life and pension business in 1981 is reported by Legal and General
Group on its world-wide business, with new annual premiums reaching £100m for
the first time, rising 3.5 per cent from £98.6m to £102.1m.  Single premiums
were nearly 70 per cent higher at £60.6m compared with £36m.

The company, the second largest life company in the UK, had an excellent year
for new individual life and pensions business in the UK.  New annual premiums
rose by a quarter from £25.8m to £32.1m and single premiums doubled from £16.4m
to £35.8m.

Ordinary life annual premiums increased by 23 per cent from £19.1m to £23.5m
while self-employed pension annual premiums rose nearly 40 per cent from £3.1m
to £4.3m.  The single premium growth came mainly from sale of guaranteed income
and growth bonds, while self-employed single premiums jumped from £500,000 to
£2m.

However, on the company, the laregst pensions company in the UK, had a mixed
pattern of business on its group pensions side.  New annual premiums fell over 8
per cent from £66.4m to £60.9m, of which £47.4m came from insured schemes and
£13.5m from managed funds.  However, single premiums on group business advanced
27 per cent from £18.7m to £23.8m of which those to insured schemes amounted to
£99m and those to managed funds came to £13.9m.

Mr Ron Peet, L and G's chief executive, said that this reduction in pensions
business was expected, reflecting the recession and lower wage settlements.
However, in the case of companies negotiating improvements in existing schemes
or coming to Legal and General for the first time, total new business was
comfortably higher at £35.6m against £31.5m.

The company's linked life subsidiary had another good year in 1981 with annual
premiums almost doubling from £2.4m to £4.7m and single premiums up by half from
£13m to £19.4m.  These figures are included in the total UK figures.

The group's overseas operations also showed strong growth, especially in
Australia, where annual premiums rose from £3.7m to £5.9m and single premiums
from £400,000 to £700,000.

Strong growth in its world-wide life and pensions business is reported for 1981
by Phoenix Assurance with a rise of more than 20 per cent in new annual premiums
from £22.1m to £27.1m and a 5 per cent increase in single premiums from £23.4m
to £24.6m.

Business was buoyant in the UK in all main sectors of the market.  New annual
premiums on individual policies rose 8 per cent from £6.1m to £6.6m, and by
nearly 15 per cent on group life and pension contracts from £8.9m to £10.2m.

But the main growth in annual premium business came in the linked life
subsidiary Property Growth Assurance with a rise of over 50 per cent from £3.9m
to £6.1m.  This latter growth was shared between life business at £3.5m and
pensions business at £2.6m.

Single premium business in the UK showed a more static picture for linked
business with premiums of £18.6m against £18.5m from Property Growth.  But on
traditional business in Phoenix, single premiums nearly tripled from £300,000 to
£1.1m.

New sums assured at £2.96bn just failed to reach the £3bn mark.

A good year for new life and pensions business is reported by Merchant Investors
Assurance Company, the UK linked life subsidiary of the Dutch insurance group
Nationale Nederlanden.  Annual premium business increased by 45 per cent to
£4.8m, with both life at £2.7m and pensions at £2.1m showing similar rates of
growth.

Unit linked single premium sales last year jumped nearly 50 per cent to £20m,
with one-quarter of the total single premiums coming from the company's new
International Currency Fund launched during 1981.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1611 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Yearlings total £12.1m

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 22

LENGTH: 106 words


Yearling bonds totalling £12.1m at 15 1/2 per cent redeemable on January 12,
1983 have been issued this week by the following local authorities.

Basingstoke and Deane BC £1m; Cheltenham BC £0.5m; Kings Lynn and West Norfolk
(BC of) £1m; Coventry (City of) £1m; Tweeddale BC £0.25m; Wycombe DC £1m;
Harborough DC £0.6m; Alnwick DC £0.25m; South Bedfordshire DC £0.25m; Swansea
(Council of The City of) £0.5m; Birmingham (City of) DC £1m; Fife Regional
Council £1m; Lambeth (London Borough of) £0.5m; Angus DC £0.5m; Motherwell DC
£1m; Oldham Metropolitan BC £1m; South Lakeland DC £0.25m; Bedfordshire CC
£0.5m.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1612 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Tooling Investments rise aided by Alfred Herbert

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 22

LENGTH: 190 words


A MAJOR contribution from the Alfred Herbert high technology machine tool
business has helped Tooling Investments to produce a more than fourfold rise in
profits in the year to July, 1981.

Tooling, a private West Bromwich-based engineering company, took over the
Herbert lathe manufacturing and tool reconditioning operations when the big
state-owned machine tool group collapsed in mid-1980, leaving the Government
with £56m in losses. Later, Tooling also bought Herbert's U.S. and Canadian
subsidiaries.

Turnover of Tooling has grown from £3.5m to £15.9m, and profit before tax from
£0.8m to £3.7m.

Mr R. M. Lynch, chairman, said that the major impact on turnover and performance
had come from the acquisition of certain Herbert businesses, "in particular, the
high technology machine tool manufacturing business at Edgwick, Coventry.

"We have been particularly pleased with the reaction we have had from customers
to the Herbert high technology lathes.  Our order book is looking healthy,
production is being increased and we expect Alfred Herbert to continue to make a
significant contribution to our profits."

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1613 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

SPAIN

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 22

LENGTH: 75 words

                 Price
   January 6       %     +or-
Banco Bilbao        335
Banco Central       335
Banco Exterior      303
Banco Hispano       325
Banco Ind. Cat.     115
Banco Santander     347
Banco Urquijo       213 -1
Banco Vizcaya       355
Banco Zaragoza      218 -2
Dragados            130 +6
Espanola Zinc        60
Fecsa              58.7 -6
Gal. Preciados       43
Hidrola            63.7 -12.8
Iberduero            50 -8
Petroleos            87 -2.5
Petroliber          101
Sogefisa             40
Telefonica           72 -1
Union Elect.         65 -7

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1614 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Quest Automation predicts loss

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 22

LENGTH: 491 words


AN UNAVOIDABLE pre-tax loss is forecast for the year by Quest Automation after
the first half taxable deficit surged from £347,000 to £1.46m for the six months
to August 31 1981.

The company's performance, say the directors, is directly linked to the capital
investment policy pursued by the industry as a whole.  They say the results for
the current financial year were materially affected by world recession.

The taxable figure wast struck after sharply increased research and technical
expenditure of £901,000, against £449,000 previously.  In the last full year
pre-tax profits of this manufacturer of computer aided design equipment, stood
at £813,000.

The group pursued its longer objectives, say the directors, despite adverse
consequences.  In the short term the planned expansion of marketing and
technical areas is being implemented.  This has had the immediate effect of
increasing costs without a corresponding return in income.  They add that these
short-term costs are unavoidable if the company is to particpate in the computer
market.

The company's wholly owned subsidiary, Computer Instrumentation, acquired in May
1981, has been reorganised recently.  The short term costs will be felt in the
second half, but the directors are confident of increasing profits.

The acquisition of Genesys in June 1980 has led to a negative return in the
period to February 1982.  The directors state that the turnover is likely to be
up to expectations and results should improve.

Future performance for the group continues to be dominated by the state of the
economy, say the directors.  They add that major capital expenditure is
significantly constrained by a continuing lack of confidence, and until this
returns the company cannot reap the benefits of its investment policy.

* comment

Quest, makers of computer aided design and manufacturing systems, obtain a full
stock exchange quotation only last November.  Yesterday's interim loss of almost
£1 1/2m, which does not include doubled research costs of £900,000, astounded
the market: the share dropped 25 per cent to 100p.  The main problem has been
lack of demand for the large (£30,000 plus) systems which account for the bulk
of turnover.  Despite this the company is continuing to plough money into fixed
assets.  The company is trebling the product range of the 1980 acquisition
Computer Instrumentation, and the costs of this will appear in the second half
figures.Quest exports about 65 per cent of turnover, but has no foothold in the
U.S. which comprises 60 per cent of the market.  Instead it has always been a
big exporter to the Warsaw Pact, now a very uncertain market in the high
technology field.  A similar drop in share price after last year's interim loss
of £347,000 was reversed in a couple of days.  With the company for the first
time forecasting a loss over the full year, a similar recovery is not likely
this time round.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1615 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Underwriters take 68% of Abwood issue

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 22

LENGTH: 144 words


The £225,000 rights issue launched by Abwood Machine Tools, the troubled
Dartford-based machine tool manufacturer, has been taken up by only 32 per cent
of shareholders.

The balance of 2,312,449 shares has been purchased by the underwriters at a
subscription price of 7.5p per share.

In October of last year a private company called Woodrush Investments, formed by
former Wilkinson Match chairman Mr Denys Randolph and Mr Roger Petty, previously
a managing director of Renwick Group, proposed an equity injection by
subscribing £80,000 in cash for a 32 per cent equity stake in Abwood.

However, this move was superseded by the rights issue underwritten by
stockbrokers Bone Fitzgerald.  The principal subunderwriter was Madison
Investments, a Cayman registered company controlled by Mr H. K. Chai, a Chinese
businessman living in Malaysia.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1616 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Morgan Grenfell in bank venture

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 22

LENGTH: 263 words


Morgan Grenfell, the City accepting house, has established a Swiss bank, Banque
Morgan Grenfell en Suisse SA, in Geneva.  It has a paid-up capital of SwFr 5m
and will concentrate on investment management and trust activities.

Morgan Grenfell has had a Swiss finance house, Morgan Grenfell (Switzerland) SA,
since the mid-1970s and this will continue to operate.  Mr D. V. Bendall, a
director of Morgan Grenfell, has been appointed chairman of the new venture.
Alexandre Hay, formerly of the Swiss National Bank, is vice-chairman.

The new bank will provide current account facilities in all major currencies and
will undertake foreign exchange transactions and international transfers.  It
will provide the full range of investment management operations and corporate
advice.

In common with other Swiss banks it will offer numbered bank accounts.  All
information relating to the identity of account holders will be completely
confidential and known only to Banque Morgan Grenfell en Suisse as prescribed by
the relevant Swiss banking and professional secrecy provisions.  The bank says
that for clients who wish to have additional protection "special arrangements
and legal vehicles can be set up in various suitable jurisdictions."

The minimum size of portfolios the new bank will handle under discretionary
management is SwFr 500,000 ($278,000).  For fiduciary deposit accounts the
general minimum is $25,000 in the U.S. currency or the equivalent of $100,000 in
other major currencies.  There is no minimum requirement for straight custody
accounts.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1617 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

DIVIDENDS ANNOUNCED

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 22

LENGTH: 79 words

                                       Date    Corre-  Total  Total
                            Current     of    sponding  for    last
                            payment  payment    div.    year   year
Brown and Tawse       int.  1.4      Apr 6    1.4      -      6.4
McCorquodale                5.25     Feb 18   5.25     8      7.89
Technology Inv. Tst.  int.  1.6      Feb 9    1.6      -      4.3




* Equivalent after allowing for scrip issue.

+ On capital increased by rights and/or acquisition issues.

Dividends shown pence per share net except where otherwise stated.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1618 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Gold Fields has 22% of Newmont

BYLINE: BY KENNETH MARSTON, MINING EDITOR

SECTION: SECTION II; Companies and Markets; Mining News; Pg. 23

LENGTH: 218 words


LONDONS Consolidated Gold Fields has now completed the major phase of its
programme for purchasing shares in America's Newmont Mining.  Last month, Gold
Fields' U.S. Amcon subsidiary bought a further 332,600 shares in Newmont,
bringing the total to 21.95 per cent, or 6.06m shares.

Prices paid per share by Gold Fields for the purchases have varied from as high
as $72 to down to about $44, but the average comes out at around $59.  On this
basis the total paid for the 6.06m shares acquired in Newmont comes out at
around $357m (£185m).

Under the agreement reached between the two mining groups, Gold Fields was
permitted to purchase up to a maximum of 22 per cent of Newmont before September
1 1982.  Thereafter, Gold Fields may further increase its holding to a maximum
of 26 per cent by the end of 1984.

When Gold Fields disclosed in April last year that it had acquired some 7 per
cent of Newmont in open market purchases, the price of the latter shares was
standing at $66.  It has since fallen to $42 in line with the general trend of
natural resource issues.

Hit by low prices for copper and gold, Newmont's earnings in the third quarter
of last year fell to $24m to make a nine-month total of $71.15m, or $2.71 per
share.  This compares with $162.6m in the same period of 1980.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1619 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Placer cuts moly output

SECTION: SECTION II; Companies and Markets; Mining News; Pg. 23

LENGTH: 167 words


THE POOR market conditions for molybdenum and the consequent cutbacks being made
by world producers of the steel industry metal, outlined here in December, are
continuing.

Canada's Placer Development, which earlier announced that it was reducing its
1982 output to 8.5m lb from 11m lbs in 1981 now says that it is cutting the
annual production rate at its Endako division to 7.13m lb.

Apart from limiting Placer's growth of unsold stocks of molybdenum, the cutback
is also an economy measure aimed at reducing the consumption of energy, grinding
media and reagents at the company's molybdenum mill.

Placer's earnings for the first nine months of 1981 fell to C$31.13m (£13.6m)
from C$66.39m in the same period of 1980.

Mr C. Allen Born, the president, pointed out in November that the average price
received for molybdic oxide in 1981 had declined by some 16 per cent from the
same period of 1980 and was continuing to fall while average copper prices were
about one-fifth down.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1620 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Inco cutback at Sudbury

SECTION: SECTION II; Companies and Markets; Mining News; Pg. 23

LENGTH: 85 words


CANADA'S Inco, the world's leading nickel producer, plans further to reduce
production at its Sudbury, Ontario, operations. It is now proposde to trim
nickel outputs there to 195m lb for 1982 from the 20m lb produced last year.

The company's other major Canadian nickel division, at Thompson in Manitoba, has
an annual output rate of some 90m lb and has recently resumed operations after a
three-month strike.  Outside Canada, the company's Indonesian nickel operations
produce some 45m lb a year.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1621 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

TREASURY STOCK

SECTION: SECTION II; Companies and Markets; Mining News; Pg. 23

LENGTH: 37 words


The Bank of England states that no conversion offer will be made in respect of
14 per cent Treasury stock 1982.  The stock will be redeemed at par on March 16.
Redemption request forms will be issued on January 20.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1622 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

ALLIANCE INV.

SECTION: SECTION II; Companies and Markets; Mining News; Pg. 23

LENGTH: 33 words


Alliance Investment had unsecured currency loans, on a short-term basis, which
totalled Yen 850m and £2 at December 31.  Since that date £1m of the latter sum
has been rolled over as Yen 425m.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1623 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Intnl. Paint builds up Holden stake

SECTION: SECTION II; Companies and Markets; Bids and Deals; Pg. 23

LENGTH: 384 words


International Paint, the 88 per cent-owned subsidiary of Courtaulds, yesterday
purchased 12 per cent of the capital of Arthur Holden, the Birmingham-based
specialist manufacturer of surface coatings.

IP announced that it had agreed to acquire the stake from a limited number of
shareholders at 150p per share.  Holden shares closed 50p higher at 158p on the
London Stock Exchange yesterday, valuing the company at £11.2m, IP gained 5p to
217p and Courtaulds 1p to 74p.

International Paint said that the investment was in accordance with its belief
that a strong international business could be created by a closer relationship
between the two companies.  The company envisaged that such a relationship in
due course "might lead naturally to a merger between the two companies."

This suggestion, however, met with a cool reception from Holden.  Mr Philip
Sturge, its chairman, said: "We didn't look for this, it is not welcome and at
first sight it is not very attractive." Mr Sturge added that the group was
talking with its advisers and a formal statement to shareholders would follow.

The bulk of the IP holding in Holden (7.9 per cent) was acquired from McLeod
Russell which inherited it when it acquired Warren Plantations last October.
The rest of the IP purchase represented a number of holdings below the
disclosable level.

With Holden shares tightly held a full bid would be difficult.  The Holden
directors and their families hold around 27 per cent, institutions represent
about 40 per cent of the shares, Metal Box has a 9.3 per cent stake and Manders
Holdings 5.07 per cent.

Mr Ronald Woodhouse, the chairman of IP and a director of Courtaulds, said
yesterday that IP was looking for a dialogue over a period of time.

He said he wanted to see a very strong European-owned company which could be
fully competitive with the large U.S. companies outside the U.S. in the
packaging coatings business.

IP has already established itself as a world learder in the marine paint
business, claiming a world wide market share of some 30 per cent.  It moved into
protective coatings with a deal in the U.S. last year.

The company is now looking at the packaging business worldwide and the
possibility of building up a company to provide the coatings for this industry.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1624 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Avon Rubber acquires nine retail outlets

SECTION: SECTION II; Companies and Markets; Bids and Deals; Pg. 23

LENGTH: 135 words


Avon Rubber Company has acquired nine tyre and motor accessory outlets which
will continue to trade under the name Tyres-an-Wheels. These were previously
owned by the Brisbane Motorway Group, of Knighton, Powys.

The £250,000 deal was transacted through Avon's wholly-owned subsidiary Motorway
Tyres and Accessories, of Reading.  It has acquired the outlets at Plymouth,
Exeter, Honiton, Salisbury, Southampton, Knighton, South Norwood, Uckfield and
Camberley.

Some of these outlets are equipped for MoT testing, and others stock tyres,
alloy wheels, exhausts, brakes and a range of do-it-yourself accessories for
motorists.

Mr Ian G. Clark, director, will remain with the company.

Motorway Tyres and Accessories now has a chain of about 200 outlets throughout
Great Britain and Ireland.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1625 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

BOWMAKER

SECTION: SECTION II; Companies and Markets; Bids and Deals; Pg. 23

LENGTH: 149 words


THE SALE of Bowmaker, the credit finance company, by Marsh and McLennan, the
U.S. insurance broking group which acquired Bowmaker when it took over C. T.
Bowring, reaches a climax this Friday.  Sealed tender offers have been sought by
Marsh and McLennan from possible purchasers and these must be submitted to S. G.
Warburg, the merchant bank advising the U.S. insurance broker.

About 30 banks and credit finance houses have expressed interest in buying
Bowmaker, which could attract a price as high as £100m.

The sealed tender operation -- all tenders will be opened on Friday -- has been
organised by Warburg to avoid an auction.  Among the bidders Bank of America and
Royal Bank of Canada are thought to be interested.  Lloyd's and Scottish and
National Westminster are also thought to be in the running.  No purchaser is
likely to be revealed before the end of the month.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1626 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

JARDINE

SECTION: SECTION II; Companies and Markets; Bids and Deals; Pg. 23

LENGTH: 110 words


Jardine, Matheson and Company and the Prudential Insurance Company of America
agreed in principle on December 24 1981 that Jardine would require the
Prudential's wholly owned property and casualty insurance brokerage operations,
Bache Insurance Services (BISI).

Subject to the pre-acquisition review of BISI and to final negotiation with the
sellers, it is expected that the agreement will be concluded by January 22 1982.

The acquisition will cost $30m (HK$170m).  In accordance with Jardine's general
policy, the cost will be financed offshore from existing financial resources and
will not require the remittance of funds from Hong Kong.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1627 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

SUTER ELECTRICAL

SECTION: SECTION II; Companies and Markets; Bids and Deals; Pg. 23

LENGTH: 93 words


Suter Electrical, the Prestcold refrigeration and hair salon equipment
manufacturer, has disclosed a 6.8 per cent holding in Concord Rotaflex, the
electric light manufacturer.

Suter -- headed by former BL executive Mr David Abell -- recently announced an
increase in its holding in Appleyard Group of Companies, the Leeds based car
distributor, to almost 25 per cent.

Concord returned to profits of £780,000 in the first half of 1981 (£164,000
loss) and has forecast a profit of £1m for the full year, compared with a loss
of £1.2m for 1980.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1628 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Macpherson buys printing ink specialist

SECTION: SECTION II; Companies and Markets; Bids and Deals; Pg. 23

LENGTH: 112 words


Donald Macpherson Group has acquired with effect from November 1 1981 A. G. W.
Britton and Sons for £350,000, with payment deferred until December 1985.

Brittons, with administrative offices in London and a freehold factory in Herne
Bay, Kent, specialises in high quality printing inks for the poster and metal
packaging industries, and also supply general printing inks.  Net assets total
£265,000.

Mr Rex Chester, chairman, says: "Brittons' specialist products are highly
complementary to the group.  Donald Macpherson is now able to meet packaging
manufacturers' increasing demands for fully integrated systems incorporating
both inks and coatings."

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1629 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

SHEFFIELD TWIST

SECTION: SECTION II; Companies and Markets; Bids and Deals; Pg. 23

LENGTH: 67 words


It is proposed to repay the Sheffield Twist Drill 7 3/4 per cent Debenture stock
1992-97 on March 6 1982 at 85 1/2p plus accrued interest.  At the same time, SKF
Investments is to offer for all the Preference shares not already owned, 45p
cash per share.  SKF Investments, which is a subsidiary of Aktiebolaget SKF,
already owns about 64 per cent of the preference shares and all the equity
shares.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1630 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

ESPLEY-TYAS

SECTION: SECTION II; Companies and Markets; Bids and Deals; Pg. 23

LENGTH: 56 words


Espley-Tyas Group has been informed that on December 23 1981 Ronnie Aitken and
Associates, which is owned by Mr R. W. Aitken, exercised its option to acquire
from Consult International 21,428 ordinary shares in Espley-Tyas at a price of
£15,000.  Consult is owned by Mr R. A. Shuck, chairman and chief executive of
Espley-Tyas.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1631 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Churchbury makes offer for Law Land loan stock

SECTION: SECTION II; Companies and Markets; Bids and Deals; Pg. 23

LENGTH: 227 words


Churchbury Estates, which last year launched a successful reverse takeover bid
for Law Land, yesterday made an offer for the Law Land convertible unsecured
loan stock.  Churchbury, owns 87.5 per cent of Law Land's issued ordinary share
capital.

Under Churchbury's offer, existing holdings of the 6 per cent and 7 1/2 per cent
Law Land stocks would be transferred to Churchbury.  Holders of the 6 per cent
stock would receive a nominal amount of 6.4 per cent Churchbury convertible
unsecured stock and holders of the 7 1/2 per cent stock would receive a nominal
amount of 8 per cent Churchbury stock.  In each case these will be equal to the
nominal amount of the 6 per cent or 7 1/2 per cent Law Land stock.

Rowe and Pitman, evaluating the offer on Churchbury's request, have described
the terms of the proposed exchange to be "fair and reasonable in all
circumstances."

However, Lloyds Bank International, who advised some of the Law Land
shareholders at the time of the bid from Churchbury, has issued a dissenting
document advising minority shareholders in Law Land against the exchange
proposals, although LBI admits "we were not consulted on them."

LBI maintains that the new stocks on offer and the increase in income are
"inadequate compensation," are not in the interests of the shareholders, and
consequently should be voted against.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1632 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

ASSOCIATES DEAL

SECTION: SECTION II; Companies and Markets; Bids and Deals; Pg. 23

LENGTH: 35 words


On January 5 1982 S. G. Warburg and Co, as an associate of Thos. W. Ward bought,
on behalf of discretionary investment clients, 10,000 ordinary 25p registered
shares of Rio Tinto-Zinc Corporation at 423p.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1633 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

GRAMPIAN

SECTION: SECTION II; Companies and Markets; Bids and Deals; Pg. 23

LENGTH: 138 words


Grampian Holdings has sold Hall Electric to Tradaville, a private company.
Hall, a wholly-owned subsidiary of Grampian, imports exports and distributes
valves, semi-conductors and other electronic products. The transaction is
effective from December 30 1981.

Hall's net tangible assets being sold amount to £1,073,000.  This excludes a
freehold property and an investment in a subsidiary company aggregating £667,000
which have been kept by Grampian.  Hall's pre-tax profits for the year to
December 31 1980 amounted to £35,000.  The results for 1981 are expected to be
below this level.

The sale has been paid with £850,000 cash and an issue of £75,000 loan stock,
payable in five equal annual instalments, with interest at 5 per cent per annum.
The first annual instalment falls due on December 31 1982.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1634 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

BRITISH VITA

SECTION: SECTION II; Companies and Markets; Bids and Deals; Pg. 23

LENGTH: 73 words


British Vita has acquired the remaining 50 per cent interest in Regatex not
already owned by its wholly owned subsidiary -- Vita-Tex.

The consideration of £140,000 was satisfied by issue of 29,200 ordinary shares,
£4,000 cash and a total of £95,812 in loan notes which are finally redeemable at
part in 1991.  Interest at 10 per cent pa is payable after each of several
tranches becomes redeemable at the noteholders' option.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1635 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

London & Overseas in £2.6m deal

SECTION: SECTION II; Companies and Markets; Bids and Deals; Pg. 23

LENGTH: 127 words


London and Overseas Freighters, which has owned a 51 per cent interest in Welsh
Overseas Freighters since it commenced trading 20 years ago, has agreed to
purchase remaining 49 per cent for £2.66m.

The sum will be paid in cash out of facilities available to London and Overseas.
Welsh Overseas' asset is the Welsh Voyager, built in 1977 -- a sistership to the
three 27,107 dwt bulk carriers already owned by London and Overseas.

At March 31 1981 net tangible assets of Welsh Overseas was £4.9m including cash
of £2.3m.  Profits to that date were £342,278 before tax and £39,497 after tax.

London Overseas will benefit from elimination of the outstanding minority
interest and from the full integration of Welsh Voyager into its fleet.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1636 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

RASMUSSEN SETS UP UK SUBSIDIARY

SECTION: SECTION II; Companies and Markets; Bids and Deals; Pg. 23

LENGTH: 110 words


Rasmussen GmbH, the Frankfurt based engineering group, has purchased its UK
interests and pressure tube business from former Charterhouse subsidiary Alenco
for around £250,000 and set up a new company, Norma Products.

Alenco has distributed Rasmussen's Norma branded worm drive hose clips and other
clamping products in the automotive and industrial markets since 1976.

The company will continue to operate from its complex in Maidenhead, Berkshire.
Part of the plan is to assemble and manufacture Norma products in the UK.

During 1982, Norma Products intend to expand into new market sectors and
introduce new products in the programme.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1637 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Tarmac merges oil and gas with Candecca

SECTION: SECTION II; Companies and Markets; Bids and Deals; Pg. 23

LENGTH: 387 words


Tarmac, the roadstone and civil engineering group, has merged the North Sea oil
and gas interests of its industrial division with the offshore interests of
Candecca Resources, the exploration and production company with extensive
on-shore acreage in the UK.

The deal, due for completion next month, will lift Tarmac's investment in the
North Sea from an estimated £21m to about £25m.  It will give Candecca a 36 per
cent stake in Plascom, Tarmac's North Sea subsidiary, while minority
shareholders will take 5 per cent.  Tarmac will keep the remaining 59 per cent.

Plascom has interests in 15 North Sea blocks, including a 2.3 per cent stake in
the Hewett gas field, which produces net revenues for Tarmac of about £1m a
year.

Mr Peter Woodman, head of Tarmac's industrial division which has included
Plascom since 1979, said last night that the subsidiary required new exploration
opportunities.  Candecca would be able to provide these as well as additional
oil and gas expertise.

Candecca has only expanded into North Sea offshore activities in the past 18
months.  But it already has three blocks in the UK sector, 29 in the German
sector and two offshore from Ireland.  These will now be acquired by Plascom.

In exchange for the Plascom shares it is handing over, Tarmac is also to receive
3m new ordinary shares in Candecca.  The company's shares are valued at about £2
each on the 163 market for oil exploration companies, capitalising Candecca at
about £50m.

The new issue, to be handled by Panmure, Gordon, will further reduce the stake
in Candecca held by its former 100 per cent parent, Sceptre Resources of
Calgary.  Sceptre's 44 per cent interest will shrink to just under 40 per cent.
The remaining shares are widely held.

Mr David Hooker, Candecca's managing director, said the company could not expand
further without some additional cash flow in the North Sea.  Plascom's revenues
would help here as well as easing Candecca's tax situation.

As part of its restructuring, Plascom will receive £600,000 from Tarmac and
£400,000 from Candecca as working capital.  It intends to participate in
drilling up to 5 wells this year, incluring one in Block 21/4, one of the blocks
to which the government attached a premium price in the seventh round of licence
awards.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1638 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Dow off 4.28 after late rally

SECTION: SECTION II; Companies and Markets; World Stock Markets; Pg. 24

LENGTH: 321 words


UNCERTAINTY over the direction of interest rates kept stocks lower despite an
unsuccessful effort to rally late in the day.

The Dow Jones Industrial Average had dropped almost nine points by early
afternoon in a continuation of Tuesday's rout but then picked up in late trading
and ended off 4.28 at 861.02.  Declines, however, were significantly higher than
advances by a margin of 1,040 to 470 and volume rose to some 51m shares from
47.51m.

AT MID-SESSION the average was off 6.85 at 858.45; the NYSE All Common index was
down 74 cents at $68.98.

Michael Metz, of Oppenheimer and Co., said the reaction to the rise in the money
supply and bearish projections on interest rates by Salomon Brothers' economist
Henry Kaufman, has been much greater than expected.  "It is obvious that the
confidence level is extremely low."

However, some analysts noted that many investors, and particularly institutions,
have large cash positions after the heavy tax-loss selling of December.  This
liquidity may prevent the market from falling much further before buying
pressure emerges.

Oil stocks have been among the hardest hit in the decline, reflecting reductions
in earnings estimates by several industry analysts.

Volume leader Union Oil California shed 7/8 to $34 7/8, Amerada Hess 7/8 to $22
1/8, Standard Oil Indiana 1 to $48 1/4, Pennzoil 1 1/8 to $44 3/4,

Oil Equipment and Services companies were also weak.  Parker Drilling retreated
1 1/8 to $17 7/8, Schlumberger 1/2 to $51 1/2, Smith International 2 3/8 to $41
1/4, Western of North America 1 5/8 to $20 and NL Industries 7/8 to $36 1/4.

Declining issues in the Blue Chips included IBM, 7/8 off at $56 1/8,
International Paper, 1/2 at $38 1/2, Eastman Kodak, 5/8 at $70 3/4, U.S. Steel,
3/4 at $29, and Merck, 1 3/8 at $82 1/2.

THE AMERICAN SE Market Value Index further weakened by 4.28 to 310.31 at 1 pm.
Volume 3.22m shares (2.68m).

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1639 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Canada

SECTION: SECTION II; Companies and Markets; World Stock Markets; Pg. 24

LENGTH: 107 words


Markets in Canada also continued to retreat over a wide front in a moderate
business yesterday morning. The Toronto Composite Index was down a further 19.2
at 1,897.6 at mid-day, with falls outpacing gains on the Exchange by 245 to
80.The Oil and Gas index dipped 77.1 to 3,539.4, Metals and Minerals 18.6 to
1,793.4 and Golds 9.7 to 2,934.2.

"Technically the market does look, weak, but we don't believe we're in for a
major decline," David McLeish, with Walwyn Stodgell Cochran Murray, said.  He
predicts the Composite index will hover around the 1,800 to 2,100 level until
the second-quarter when it will begin moving upwards.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1640 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Tokyo

SECTION: SECTION II; Companies and Markets; World Stock Markets; Pg. 24

LENGTH: 239 words


With sentiment further dampened by the overnight sharp setback on Wall Street,
the Tokyo market declined in another moderate business, despite news on Tuesday
of a record fall in the outstanding balance of margin buying on Japanese stock
exchanges.

Some Bule Chips were particularly depressed, but the Pharmaceuticals sector and
manufacturers of new ceramic products recorded fresh advances.

The Nikkei-Dow Jones Average receded 21.74 to 7,697.60 and the Tokyo SE index
lost 2.18 at 569.46.  Declining issues outscored rises by 388 to 224 on the
First Market following volume of 280m shares (240m).

Light Electricals, Precision Instruments, Motors, Steels, Shipbuilders, Heavy
Electrical Machines and some other Populars lost ground on sporadic selling.

Fuji Photo retreated Y50 to Y1,220, Toray Y7 to Y452, Sony Y80 to Y3,820, Honda
Motor Y22 to Y790, Hitachi Y13 to Y670, Kawasaki Heavy Y5 to Y230, Nippon Steel
Y2 to Y173, Canon Y18 to Y907 and TDK Electronic Y120 to Y3,470.

Housing and Construction companies were also sold, reflecting continued slow
housing starts in November.  Hasegawa Komuten lost Y14 to Y636 and Sekisui
Prefab Y16 to Y765.

In contrast, Kyoto Ceramic climbed Y190 more to Y4,140, while among
Pharmaceuticals, Fudisawa added Y60 at Y1,450, Jionogi Y45 at Y884, Green Cross
Y40 at Y2,200 and Taisho Y19 at Y625.

Optical Fibres, Machine Tools and Robot Manufacturers were mixed.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1641 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Germany

SECTION: SECTION II; Companies and Markets; World Stock Markets; Pg. 24

LENGTH: 129 words


Leading shares closed mixed after a quiet session, during which prices first
picked up from opening lows but tended to fall back in later trading as buing
interest waned.  Broker noted that foreign investors appeared to be behind some
selected rises.

Steels were among shares moving higher, with market sources commenting that
higher steel prices and increasing prospects for a reorganisation of the German
industry aimed at profitability were behind the upturn.  Kloeckner Werke rose DM
4.70 to DM 58.30, Krupp DM 3.50 to DM 53.00, Thyssen 90 pfennigs to DM 73.20 and
Hoesch 50 pfennigs to DM 20.00.

Public Authority Bonds were a little easier for choice in light trading.  The
Bundesbank bought DM 14.9m of stock after purchases of DM 51.1m on Tuesday.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1642 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Australia

SECTION: SECTION II; Companies and Markets; World Stock Markets; Pg. 24

LENGTH: 143 words


Stocks mainly retreated in the wake of the Wall Street fall overnight.  Selling
pressure persisted throughout the day and the Australian All Ordinaries index
finished 8.1 down at 586.8, but actual turnover was low.

The Oils group, which had attracted some buying interest over the past two days,
was no exception to the weak trend yesterday.  The Oil and Gas index lost 16.1
at 678.0, while the Metals and Minerals sector index shed 7.4 to 415.3.

Overall market leader BHP was at the forefront of the slide with a 35 cents fall
to A$10.10, while CSR, another resources-related issue, dipped 12 cents to
A$3.88.

Among Oil and Gas shares, Santos shed 20 cents to A$6.80, Vamgas 20 cents to
A$11.20, Woodside 7 cents to A$1.18, Hartogen 20 cents to A$6.70 and Claremont 8
cents to A$1.42.  Alliance Oil, however, improved 5 cents to A$1.80.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1643 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Paris

SECTION: SECTION II; Companies and Markets; World Stock Markets; Pg. 24

LENGTH: 56 words


Bourse prices, after Tuesday's good rally, closed on a mixed note following very
quiet trading, with sentiment restrained by the overnight fall on Wall Street.

However, isolated strong spots included BSN Gervais Danone, up FFr 36 at FFr
1,210, Michelin, FFr 38 firmer at FFr 668, and Peugeot, which rose FFr 11.5 to
FFr 184.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1644 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Hong Kong

SECTION: SECTION II; Companies and Markets; World Stock Markets; Pg. 24

LENGTH: 147 words


The regular Wednesday half-day session left the market little changed after an
early decline, partly due to the overnight depression on Wall Street, was
recouped by subsequent light bargain hunting.

However, brokers said the market is suffering from neglect and could possibly
remain this way until after the Chinese New Year holiday at the end of January.
They added that some uncertainty about the depth of the U.S. recession and the
direction of interest rates was holding investors back from investing funds in
stocks.

The Hang Seng index was a slight 1.06 off on balance at 1,385.72.  Trading was
again very thin, with turnover totalling only HK$119.48m in the short session,
against HK$133.85m for the full trading day on Tuesday.

Utilities continued to attract some support, China Light gaining 20 cents to
HK$13.40 and HK Telephone 10 cents to HK$29.60.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1645 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Mystery buyer boosts U.S. tin stockpile sales

BYLINE: BY NANCY DUNNE IN WASHINGTON

SECTION: SECTION II; Companies and Markets; Commodities and Agriculture; Pg. 25

LENGTH: 335 words


THE "MYSTERY" buyer now holding up spot prices on the London tin market has
apparently stimulated a boom in tin sales from the U.S. strategic materials
stockpile.

Since the General Services Administration removed its restriction on exports of
GSA tin on December 14, the Agency has sold 3,140 tonnes, valued at almost $50m.

The GSA sales have been proceeding very slowly before the rule change.
Authorised to sell 10,000 tonnes a year for three years, the agency had disposed
of only 3,170 in the previous 15 months.

A GSA spokesman attributed the boom to machinations in the London market.

"Obviously, we're cutting in on whoever these buyers are," he said.  "We don't
know if we can keep it up because we don't know these people's resources.  But
it amazes me to see how much money they seem to have available."

He said that more than half the GSA tin is being bought for export, mostly to
Europe.

"We believe most of our tin is going into use," he said.  "It doesn't have to be
mined and you can get it in 30 days."

The GSA price is a good one.  On Tuesday the agency sold 180 tonnes at its daily
offering for $708 a pound.  The London spot price then stood at $748 a pound and
the New York price at about $723 a pound.

Most of the buyers are New York traders with affiliates in London.  Among those
most active are: Ore and Chemicals in New York, which is controlled by
Metallgesellschaft, the Associated Metals and Minerals Corp, a member of the
Lissaeuer Group, Amalgamated Metals, a large international tin trader, and
Billiton, owned by Royal Dutch Shell.

Last July, Associated Metals went to court to try to stop the GSA tin sales,
but, reportedly, the firm is now buying government tin because it is cheaper to
purchase than to produce.

Proceeds from the tin sales go to the Stockpile Transaction Fund to buy new
materials for the stockpile.  Last year the agency earned $92m from the sale of
several commodities, including $63m for tin and $18m for silver.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1646 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Speculators hit lead and zinc

BYLINE: By Our Commodities Staff

SECTION: SECTION II; Companies and Markets; Commodities and Agriculture; Pg. 25

LENGTH: 195 words


SPECULATIVE SELLING pushed lead and zinc prices lower on the London Metal
Exchange yesterday overwhelming the bullish impact of Tuesday's news that
workers at the Republic of Ireland's Tara lead-zinc mine had decided to continue
their six-month-old strike.

Cash lead ended £25 down at £331 a tonne and cash zinc £17 down at £437.50 a
tonne.

Australian Mining and Smelting (Europe), whose Avonmouth smelter is a big user
of Tara zinc production said the strike could have a serious effect on the
European zinc industry if it is not resolved soon.  A company official said he
was surprised at the apparent lack of concern shown by other European smelters
over the strike at Tara's Navan mine, which supplied around 10 per cent of
Europe's zinc concentrate requirements.

The copper and tin markets were quiet and featureless.  Cash copper wirebars
ended £12 down at £846.50 a tonne while cash standard tin rose £2 to £8,302.50 a
tonne.

News of cutbacks at Inco's Subdbury, Ontario, operation and rumours of a similar
move coming at Falconbridge of Canada lifted nickel prices.  The cash quotation
on the LME ended £25 up at £2,900 a tonne.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1647 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Wheat supply optimism

BYLINE: BY JOHN CHERRINGTON, AGRICULTURE CORRESPONDENT

SECTION: SECTION II; Companies and Markets; Commodities and Agriculture; Pg. 25

LENGTH: 452 words


I LEARNED many years ago that the only certain forecast that could be made about
commodity trends and prices was that they would move up and down -- although the
timing of the cycle is always in doubt -- and that they depend on supply and
demand.

That does not prevent many people from attempting the exercise, and the latest
was M Jean Parotte the executive secretary of the International Wheat Council
addressing a growers' meeting in Canada this week.

In his analysis of wheat prospects he refuted the scaremonger thesis of those
who believe that increasing populations will run out of food or even space on
which to grow it.  He believed that the potential for bringing new land into
production had not yet been achieved by a very wide margin, and that there could
be a continuation in the steady improvement in yields of the last 20 years.

This has resulted in a near doubling of wheat production from 250m to 450m
tonnes world wide, not only in the traditional exporting countries but in
countries previously importers such as India and Pakistan.  World trade has kept
pace and exports have grown from 43m tonnes in 1961 to 100m tonnes in 1981-82.

In the 1960s the USSR was a regular exporter but is now one of the biggest
importers.  But M Parotte did not think that either the USSR or the other
centrally planned countries wished that situation to continue as they could well
achieve self-sufficiency by the end of the century.

The main deficit was in the developing countries of Africa and south-east Asia,
where consumption of wheat was growing with urbanisation.  Unfortunately these
countries were very poor and their opportunities of importing wheat depended in
part on aid from the richer countries.

The main scope lay in what he called the middle-income countries.  Some of these
had been industrialised like South Korea and Hong Kong and were already
substantial wheat consumers.  He thought increasing prosperity would turn them
towards meat as well as replacing coarse grains with wheat.

In short, a general increase in consumption which was likely to be more than
matched by production.  He claimed also in real terms the value of wheat which
had steadily fallen since 1910 would still be falling.

The only question I have about this scenario is that the increase in wheat
production we have seen latterly has been due to an increasing use of
energy-based inputs.  There is some evidence that in the U.S. and other
countries the continuing increase in production would be contingent on a higher
price for farmers either in the market or through government support to pay for
all these inputs.  The low-grade prices may not be as permanent as M Parotte
thinks.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1648 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Meat exports at record levels

BYLINE: BY DAI HAYWARD IN WELLINGTON

SECTION: SECTION II; Companies and Markets; Commodities and Agriculture; New
Zealand; Pg. 25

LENGTH: 646 words


MEAT shipments from New Zealand reached a record 767,370 tonnes in the season
just ended.  This was a jump of 33,920 tonnes over the previous year.

More than half of the meat shipped to 36 different countries around the world
was lamb.  Total lamb shipments of 378,944 tonnes were up by 28,742.  But in
spite of the increase in lamb shipments, the tonnage sent to the UK -- for
almost a century NZ's main customer -- dropped by 30,000 tonnes.  This was
because of better prices and a growing demand from Middle East countries.

The implementation of the EEC sheepmeat regulation and the seamen's strike in
February also caused a distortion in the market which contributed to the drop in
supplies to the UK.  Total shipments of lamb to Britain during the season was
151,952 tonnes.  The NZ meat industry plans to increase lamb exports to the UK
in the 1981-82 season.  A minimum target of 175,000 tonnes has been set by the
Meat Board and the Meat Exporters Council.

Last season there was another big jump of meat shipments to the Middle East.
This went up by 36,000 tonnes to 149,000 tonnes during the year.  Most of this
was lamb.  Total lamb shipments to the Middle East went up 97,000 tonnes to
138,354 tonnes.

A big question mark hangs over N7's meat exports to Iran next year.  Iran was
the largest single buyer in the region taking 93,041 tonnes of the 138,000
shipped to the region.  However, the row over payments for the lamb is not yet
settled and New Zealand will not sign a new agreement until the outstanding
debts of more than $40m are settled.

Last month payment of NZ$8m was received and the meat industry hoped there would
be a steady flow of payments.  This has not happened and meat shipments are
being held up by order of the Meat Board.

The NZ meat industry was astounded by a statement from Iran that it did not owe
New Zealand anything, but that NZ owed Iran $6m for a shipment which went
missing.  This was offloaded at Bahrain after sitting at anchor waiting to
unload in Iran for nearly three months.

The value of the Iran meat lamb trade is worth more than NZ$250m to New Zealand
and the Meat Board and exporters are trying to conclude the delicate
negotiations to clear up payment dispute so that a new contract can be signed.

Japan increased its lamb buying by 4,000 tonnes to 16,000 tonnes and also took
another 6,000 tonnes of mutton.  It is the Soviet Union, however, which is the
main customer for NZ mutton, taking 57 per cent of all mutton exports.
Shipments to the USSR reached 50,000 tonnes and without the Russian trade New
Zealand's mutton market would be depressed.

North America took most of the beef and veal with the U.S. buying 163,722
tonnes.

The future of New Zealand's beef exports to the U.S. were assured for another
few years last week when the House of Representatives passed a 1981 Farm Bill on
December 17 by only two votes.  This was the closest vote ever in the House of
Representatives, and had it not accepted the compromise worked out by the
Administration on meat imports, NZ's NZ$400m meat market would have been at
risk.  A lobby in the House of Representatives wanted to ban all meat imports
produced with the aid of chemicals or drugs prohibited in the U.S. New Zealand
farmers rely heavily on fertilizer to maintain grass crops and this clause would
have affected NZ's trade with the U.S. had it not been thrown out.

Total shipments by beef and veal to North America were 225,590.  Meat production
for the 1982 season should be maintained at last year's level, but farmers and
farm groups are concerned that inflation within NZ and rapidly rising farm costs
will price New Zealand out of many markets.

In an effort hold down industry costs the government recently accepted an
increase in killing charges which are now paid by the taxpayer instead of the
farmer.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1649 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

BP in eel marketing scheme

BYLINE: By Diana Smith in Lisbon

SECTION: SECTION II; Companies and Markets; Commodities and Agriculture; Pg. 25

LENGTH: 107 words


British Petroleum and Eminco, a Portguese holding company, have begun exporting
live eels to Holland. This unusual joint venture is part of BP's diversification
programme, and was co-ordinated by the oil group's Dutch subsidiary, Hendrix,
which, among other items, manufactures food for fish.

The venture began two years ago when BP of Portugal and its local partners set
up indoor and outdoor tanks to breed and fatten up eels to the standards
appreciated by the Dutch, who are big consumers of smoked eels.  The first
export of 5 tonnes (about 40,000 eels) was made before Christmas in eeltanker
lorries owned by their clients.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1650 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Advertisement award for wool

SECTION: SECTION II; Companies and Markets; Commodities and Agriculture; Pg. 25

LENGTH: 79 words


THE INTERNATIONAL Wool Secretariat has won a first-place award at the 11th
annual U.S. television commercial film festival. Its winning advertisement
gained the women's category award.  It was for Woolmark knitwear.

Emphasising the long-lasting good looks of pure new wool knitwear, this was the
latest in its sheep commercials series and was chosen to head the secretariat's
autumn television campaign.  There were more than 1,500 entries to the festival.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1651 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Equity leaders rally from early dullness and close with burst of strength
despite Wall St weakness

SECTION: SECTION II; Companies and Markets; London Stock Exchange; Pg. 26

LENGTH: 433 words

        Account Dealing Dates
                Option
 * First  Declara-    Last    Account
Dealings    tions   Dealings    Day
Dec 23    Jan 7     Jan 8     Jan 18
Jan 11    Jan 21    Jan 22    Feb 1
Jan 25    Feb 11    Feb 12    Feb 22




* "New time" dealings may take place from 9.30 am two business days earlier.

London stock markets late yesterday cast off Wall Street and other U.S.
influences with impressive results.  Leading shares, which were opened lower
across the board but then staged a progressive technical recovery, moved up
strongly in the after-hours' trade, partly encouraged by reports of the Ford
plant voting and particularly the big majority at Dagenham to accept the
company's revised pay offer.

The marked change in tone was well illustrated by the FT Industrial Ordinary
share index.  Down 4.2 at 10.00 am, reflecting nervousness over the sharp
overnight drop in New York values, this measure recorded only a marginal loss at
noon and a net gain of 1.9 at 3.00 pm before closing 5.6 up on balance at 523.7.

Throughout official trading, the recovery was largely technical with
bear-covering increasing as leading equities rallied.  But the final flourish
may well have represented revived institutional activity, despite a simultaneous
fresh bout of weakness on Wall Street early yesterday.

Another late feature was provided by speculation that Unigate, up 10 at 108p,
might be the target of a market raid today from either Bats or Allied-Lyons.
Earlier in the session, T. W. Ward responded to increased offer terms and
rumours that bidders RTZ were buyers in the market, which also witnessed a raid
on Arthur Holden; International Paint announced later that it had acquired a 12
per cent stake which left Holden at 158p for a rise of 50 on the day.

Government securities also regained part of the ground lost on Tuesday.  The
firmer opening tone in this sector reassured the equity sectors and helped
leading shares to recover from 10.00 am onwards.  Longer Gilts, however,
struggled to hold their improvements despite sounder conditions in the U.S. bond
market early yesterday.  Ahead of today's application for the £500m issue of
special low-coupon Treasury 3 per cent 1987, the shorts made a better showing
and staged rises extending to 1/2.

The subdued performance of the underlying securities resulted in a sharp
contraction of interest in Traded options with contracts completed yesterday
amounting to 1,101 compared with Tuesday's 1,957.  British Petroleum and Shell
Transport attracted 119 and 116 calls respectively, while 164 calls were struck
in GEC.

LANGUAGE: ENGLISH

GRAPHIC: Graph, no caption

                   Copyright 1982 The Financial Times Limited


                             1652 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Guinness Peat rise

SECTION: SECTION II; Companies and Markets; London Stock Exchange; Pg. 26

LENGTH: 332 words


Unsettled on Tuesday by reports that the Stock Exchange is studying the share
price movements prior to the announcement that a partial offer might be made for
the company, Guinness Peat rallied smartly to close 7 higher at 95p, after 97p,
following Press comment.  Elsewhere in a firmer banking sector, Bank of Scotland
rose 17 to 515p on revived bid speculation.  Reflecting awaiting the Monopolies
Commission decision on the controversial bids from Standard Chartered and
Hongkong and Shanghai, Royal Bank of Scotland gained 11 to 197p.  The major
clearing Banks picked up on technical considerations.  Lloyds regained 8 to 428p
as did NatWest, 408p.

A slightly firmer tone developed in leading Breweries and most recovered the
small losses sustained on Tuesday.

After an uncertain start, leading Buildings rallied on the appearance of cheap
buyers and closed narrowly mixed.  Tarmac slipped to 398p before closing just 2
cheaper on balance at 402p following the agreement to merge its offshore oil and
gas exploration interests with those of Candecca, 2 firmer at 212p, after 204p.
Recently firm Wiggins Group attracted a reasonable business and finished 4
cheaper at 86p.  Burnett and Hallamshire improved 10 to 930p following Press
comment.

ICI, marked down to 286p at the outset on Wall Street influences, rallied on the
appearance of buyers to close 2 dearer on balance at 290p.

Marked a few pence easier at the outset, leading Stores soon recovered and most
finished a shade firmer for choice.  Gussies "A" touched 428p before rallying to
435p, a net gain of 2.  Mothercare, a dull market of late, attracted scattered
support and rose a couple of pence to 157p, while prospective merger partners
Habitat added a similar amount to 115p.  Cornell Dresses remained under pressure
and eased 3 for a two-day fall of 11 to 152p, but Polly Peck revived with a gain
of 10 to 355p.  Dixons Photographic, first-half figures scheduled for next
Thursday, shed 5 to 158p.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1653 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Quest Auto. flat

SECTION: SECTION II; Companies and Markets; London Stock Exchange; Pg. 26

LENGTH: 356 words


Quest Automation plummeted 33 to 100p, after 95p, on acute disappointment with
the interim results.  Elsewhere in Electricals, Amstrad came on offer at 217p,
down 13, while Rediffusion shed 7 at 170p and Cray Electronic relinquished 5 to
95p.  Muirhead cheapened a few pence to 109p ahead of next Thursday's annual
results, while Electronic Rentals softened the turn to 85p; the latter's interim
figures are due today.  After an initial mark-down, the leaders rallied to close
at, or near, the day's best.  Pleassey recovered from 351p to finish a net 7
dearer at 360p and Thorn EMI ended 5 to the good at 460p.  After extremes of
811p and 800p, GEC closed a couple of pence harder on balance at 810p.

Interest in the Engineering leaders failed to expand from the recent low level,
a useful recovery in quotations largely reflecting technical influences.
Vickers, a poor market of late, regained 6 to 150p, sentiment being helped by
the encouraging statement on the world-wide sale of Rolls-Royce cars.  Tubes
edged up 4 to 126p and John Brown 2 1/2 to 55p, while GKN ended a few pence
dearer at 161p.  Brown and Tawse featured secondary issues with a rise of 10 to
140p in response to the half-year figures.

Folkes Hefo N/V closed a penny firmer at 14 1/2p; it was announced yesterday
that the chairman of the company had acquired 644,500 non-voting shares to bring
his holding of non-voting shares and ordinary shares to a total of 6.14 per
cent.  Haden encountered scattered demand and put on 6 to 203p, while
speculative support lifted Mitchell Somers 4 to 43p.  Bromsgrove Castings, on
the other hand, eased 3 to 42p and Butterfield Harvey 1 1/2 to 21p.

Unigate featured prominently in the after-hours' dealings and finished a net 10
up at 108p on rumours of a dawn raid from BATs, 2 cheaper at 343p, after 340p.
Elsewhere in the Food sector, Tate and Lyle put on 8 to a peak of 208p; the
preliminary results are due January 20.  Among secondary issues, Singlo
attracted fresh support and added 1 1/2 to 33p, while Associated Fisheries
improved a penny to 73p; the latter's annual results are due next month.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1654 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

A. Holden jump

SECTION: SECTION II; Companies and Markets; London Stock Exchange; Pg. 26

LENGTH: 392 words


Arthur Holden highlighted miscellaneous industrials, jumping 50 to a peak of
158p, following the acquisition by stockbrokers Greenwell and Co. in a dawn raid
of a 12 per cent stake in the company at a price of 150p per share on behalf of
International Paint; the latter added 5 to 217p.  T. W. Ward rose 12 for a
two-day advance of 20 to a 1981-82 peak of 230p in response to the increased but
rejected bid terms offered by RTZ; T.W.W.'s 7 1/2 per cent convertible 1997/2002
gained 12 points to £184 in sympathy.  This new development also prompted a
sympathetic gain of 15 to 525p, after 530p, in Tunnel B which stands to receive
a bid from RTZ if the latter's offer for Ward is successful.  News of a
director's resignation and subsequent share disposal left Wolverhampton Steam
Laundry a couple of pence better at 52p.  Silentnight rose 4 to 93p following
the forecast of record profits for the year.  Carlton Industries closed
unaltered at 200p; the price in yesterday's issues was incorrect.  The leaders
rallied after a dull start, but the possible purchase of a loss-making British
Steel subsidiary left Trafalgar House a penny down at 101p.

Further consideration of the annual results left Pleasurama 2 cheaper at 303p.
Black and Edgington, a volatile market of late, put on 4 to 52p on revived bid
hopes.

Newspapers remained quietly dull.  Associated, preliminary results due next
Thursday, gave up 2 more to 173p.  Among Paper/Printings, McCorquodale announced
full-year earnings in excess of general expectations and closed 6 to the good at
136p.  John Waddington, interim results today, held steady at 180p.  Revived
interest lifted Mills and Allen 15 to 445p, while a Press mention aided BPC, a
penny dearer at 27p.

Marked easier at the outset, Properties rallied in the absence of selling and,
on the appearance of cheap buyers, closed with modest gains.  Land Securities
finished 4 dearer at 294p, after 288p.  Among the bid situations.  London Shop
Property firmed 2 to 137p compared with the 135p per share offer from Rosehaugh,
5 up at 255p.  Further consideration of the Greycoat Estates bid terms for the
company left City Offices a penny firmer at 124p; Greycoat improved 3 to 150p.
On the other hand, Berkeley Hambro, which has agreed to merge with Town and
City, shed 4 for a two-day fall of 12 to 328p.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1655 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Oils down again

SECTION: SECTION II; Companies and Markets; London Stock Exchange; Pg. 26

LENGTH: 221 words


Overshadowed by the continuing weakness in crude prices and by the overnight
setback on Wall Street, Oil shares gave further ground.  Fresh falls in the
leaders were modest, British Petroleum closing only 2 cheaper at 300p and Shell
4 off at 390p. Exploration issues, in contrast, recorded some fairly substantial
losses.  Falls of 10 were marked against Berkeley, 345p, Cambride, 285p, Flair
Resources, 170p, and Pict Petroleum, 150p.  Against the trend, Jackson
Exploration firmed 4 to 106p in response to an investment recommendation.

Movements in Overseas Traders usually favoured holders.  S. and W. Berisford
features with a gain of 7 to 126p; the annual results are due next Thursday.
Inchcape rose 5 to 270p, while Tozer Kemsley and Millbourn attracted call option
money and added a couple of pence to 72p, after 73p.

Among Financial Trusts, Aitken Hume, reflecting an investment recommendation,
advanced 10 to 165p, while Kitchen Taylor, awaiting today's preliminary
statement, rose 7 to 102p.  Ahead of the interim results, due shortly,
Mercantile House eased afresh to 400p before settling at 410p for a fall of 13
on the day.

Shippings were highlighted by a revival of bid speculation in P. and O. Deferred
which were briskly traded and closed around the day's best with a rise of 9 at
133p.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1656 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Golds down

SECTION: SECTION II; Companies and Markets; London Stock Exchange; Pg. 26

LENGTH: 250 words


Mining markets met persistent selling prompted by sharp falls in base-metal and
a marginal decline in precious metal prices.

South African Golds were steady at the outset following light support from
Johannesburg, but subsequently fell away on lack of interest and scattered
selling to close showing minor losses.

The Gold Mines index eased 1.1 to 300.9 -- its fifth loss in six trading days,
while the bullion price closed $3 easier at $402.5 an ounce.

Losses in the heavyweights extended to 3/8 as in Randfontein, £30 1/8, and St.
Helena, £16, while the medium- and lower-priced stocks showed Kinross 7 cheaper
at 415p.

The trend in metal prices depressed London Financials.  Gold Fields and Charter
gave up 3 apiece to 472p and 245p respectively while Rio Tinto-Zinc fell to 424p
following the increased bid for T. W. Ward before recovering to close a net 3
cheaper at 427p.

The overnight weakness on Wall Street, fears of higher interest rates, depressed
metal prices and a sharp fall in Sydney and Melbourne overnight unsettled
Australians.

The leaders were particularly vulnerable and continued to lose ground after an
initial mark-down.

MIM Holdings fell 8 to a 1981-1982 low of 176p, while similar losses were seen
in Gold Mines of Kalgoorlie, 360p, Renison, 265p, and Western Mining, 234p.
Peko-Wallsend dipped 10 to 320p.

In the more speculative stocks, Western Continental closed 10 down at a 1981-82
low of 40p and Kitchener 5 cheaper at a low of 95p.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1657 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Dollar eases

SECTION: SECTION II; Companies and Markets; Currencies, Money and Gold; Pg. 30

LENGTH: 598 words


The dollar was mostly easier in currency markets yesterday as Euro-dollar rates
fell, following Monday's lower U.S. Federal fund rate.

Sterling was slightly firmer overall but finished below its best level,
reflecting a weaker trend in UK interest rates.  Trading was rather quiet.

The Belgian franc remained the weakest member of the European Monetary System
but showed a small improvement despite a cut in the discount and Lombard rates.
Elsewhere member currencies showed little overall change, with the French franc
continuing as the strongest currency followed by the Duth guilder.

DOLLAR -- Trade weighted index (Bank of England) 106.8 against 107.2 on Tuesday
and 110.6 six-months ago.  Three month Treasury bills 11.50 per cent (11.34 per
cent six months ago).  Annual inflation rate 9.6 per cent (10.2 per cent
previous month) -- The dollar slipped to DM 2.2465 against the D-mark from DM
2.2610 and was lower against the Swiss franc at SwFr 1.8090 compared with SwFr
1.8110.  It was slightly firmer against the Japanese yen however at Y219.6 from
Y219.5.

STERLING -- Trade-weighted index 91.5 against 91.5 at noon, 91.7 opening and
91.4 previous close (93.2 six months ago).  Three month interbank 15 19/32 per
cent (13 1/16 per cent six months ago).  Annual inflation rate 12 per cent (11.7
per cent previous month).  Sterling traded within a very narrow range in
generally featureless trading.  Against the dollar the spread for the day was
only 1 per cent, between $1.92 and $1.93.  It opened at $1.9250 and touched
$1.93 before noon.  It touched its low late in the afternoon and closed at
$1.9235-1.9245, a rise of 1.15c.  The pound closed at DM 4.3250 against the
D-mark, slightly down from DM 4.3275 on Tuesday and SwFr 3.4825 from SwFr
3.4650.  It was firmer against the yen at Y422.5 from Y420.0.

D-MARK -- EMS member (second weakest).  Trade weighted index 122.6 against 122.1
on Tuesday and 115.7 six months ago.  Three-month interbank 10.55 per cent
(12.95 per cent six months ago).  Annual inflation 6.3 per cent (6.6 per cent
previous month) -- The D-mark was firmer against the dollar at yesterday's
fixing in Frankfurt.  The dollar was fixed at DM 2.2479 down from DM 2.2540 with
the Bundesbank selling a token $3.6m.  Trading was rather quiet and the dollar
traded within a narrow range.  The weaker trend reflected an easing in
Euro-dollar rates following a fall in Fed fund rates.  Sterling slipped to DM
4.3240 from DM 4.3280 while the Swiss franc was lower at DM 1.2497 against DM
1.2500.  Within the EMS the French franc fell to DM 39.3850 per FFr 100 from DM
39.43 and the Belgian franc lost ground to DM 5.8680 per BFr 100 compared with
DM 5.8740.

BELGIAN FRANC -- EMS member (weakest).  Trade weighted index 104.8 against 104.7
on Tuesday and 104.6 six months ago.  Three-month Treasury bills 15 1/4 per cent
(16 1/4 per cent six months ago).  Annual inflation 8.1 per cent (7.8 per cent
previous month) -- The Belgian franc was slightly firmer within the EMS
yesterday despite a one point cut in the discount rate to 14 per cent and a two
point cut in the Lombard rate to 15 per cent.  However, figures released
yesterday indicated that the Belgian central bank spent the equivalent of BFr
1bn last week supporting the Belgian franc in the foreign exchange market.
Within the EMS the D-mark rose to BFr 17.04 from BFr 17.03 and the French franc
was higher at BFr 6.7710 1/2 from BFr 6.7140.  On the other hand the Dutch
guilder slipped to BFr 15.5290 from BFr 15.5380 and the Danish krone to BFr
5.2137 from BFr 5.2210.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1658 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

London rates ease

SECTION: SECTION II; Companies and Markets; Currencies, Money and Gold; Money
Markets; Pg. 30

LENGTH: 396 words

HIGHLIGHT: London clearing bank base lending rates 14 1/2 per cent (since
December 4)


Short-term interest rates eased slightly in quiet London money market trading,
following the better than expected provisional money supply figures from the
Bank of England earlier this week and the downward trend in U.S. interest
rates.The Federal funds overnight rate fell to 11 3/4 per cent on Tuesday, and
remained soft at around 11 7/8 per cent early yesterday, prompting intervention
by the New York Federal Reserve Bank to drain reserves by way of overnight
reverse repurchase agreements.

The supply of money wasprobably slightly above the market's requirements in
London yesterday, and the Bank of England did not intervene.  In its morning
forecast the Bank of England suggested that the underlying surplus was around
£50m, and that the major factors were: bills maturing in official hands and a
net take-up of Treasury bills -£135m, and a fall in the note circulation +£115m.

In comfortable conditions seven-day interbank money fell to 14 5/8-14 7/8 per
cent from 14 3/4-15 1/8 per cent, and three-month to 15 1/2-15 11/16 per cent
from 15 9/16-15 13/16 per cent.

In Brussels the Belgian National Bank cut its discount rate by 1 per cent to 14
per cent, and the Lombard rate by 2 per cent to 15 per cent.  The last change
was on December 11, when the discount rate was raised by 2 per cent to 15 per
cent as a result of severe pressure on the Belgian franc.  The latest moves were
in response to an easing of short-term interest rates, and the improvement of
the franc following the solution of Belgium's recent political crisis.  On the
first two days of this week the central bank cut interest rates on short-term
Treasury certificates.

In Amsterdam the Dutch central bank met subscriptions in full for a special
advance of Fl 2.64bn at an interest rate of 10 5/8 per cent.The advance, which
will add liquidity to the money market, will be for a seven-day period beginning
today.  The advance seems likely to meet the current needs of the market, with
interest rates steady in calm trading yesterday.  Call money was unchanged at 10
1/8-10 1/4 per cent.

In Paris interest rates eased slightly, with call money falling to 15 1/4 per
cent from 15 3/8 per cent.  The Bank of France intervened to add liquidity at an
unchanged rate of 14 3/4 per cent by purchasing about FFr 7bn of first category
paper, maturing between January 12 and 20.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1659 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Slight fall

SECTION: SECTION II; Companies and Markets; Currencies, Money and Gold; Gold;
Pg. 30

LENGTH: 128 words


Gold fell $3 an ounce in the London bullion market yesterday to close at
$402-403.  Trading was again dull and featureless, and after opening at $401
3/4-402 3/4, the metal was fixed at $402 in the morning and $401.5 in the
afternoon.

In Paris the 12 1/2 kilo bar was fixed at FFr 74,700 per kilo ($407.11 per
ounce) compared with FFr 74,600 ($406.62) in the morning and FFr 74,500
($404.89) on Tuesday afternoon.

In Frankfurt the 12 1/2 kilo bar was fixed at DM 29,180 per kilo ($404.02 per
ounce) against DM 29,210 ($403.00) previously and closed at $401 1/2-402 1/2
from $403-404.

In Luxembourg the dollar per ounce equivalent of the 12 1/2 kilo bar was $402.5
compared with $400.50.

In Zurich gold finished at $400-403 compared with $402-405.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1660 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

CANNING BASIN

SECTION: SECTION II; Companies and Markets; Mining News; Pg. 23

LENGTH: 59 words


The Blina No. 3 well drilled in the Canning Basin of Western Australia has
flowed oil to the surface according to reports from Sydney.

No details of flow rates were disclosed.  Among previous wells drilled at the
Blina exploration area, Blina 1 flowed oil at rates of around 900 barrels a day
and Blina 2 at a rate of around 95 barrels a day.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1661 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

BOARD MEETINGS

SECTION: SECTION II; UK Company News; Pg. 22

LENGTH: 171 words


The following companies have notified dates of board meetings to the Stock
Exchange.  Such meetings are usually held for the purpose of considering
dividends. Official indications are not available as to whether dividends are
interims or finals and the subdivisions shown below are based mainly on last
year's timetable.

TODAY

Interims: Peter Black, Electronic Rentals, Robert Kichen Taylor, John
Waddington.

Finals: Birmingham Pallet, Hickson and Weich.

FUTURE DATES
  Interims --
Boardman (K.O.) Intnl.                  Jan 12
Courts (Furnishers)                     Jan 11
G.T. Japan Invest. Trust                Jan 18
MFI Furniture                           Jan 19
Mercantile House                        Jan 25
Ratners (Jewellers)                     Jan 12
  Finals --
Amalg. Tin Mines of Nigeria             Jan 12
Daily Mail and General Trust            Jan 14
Greenfriar Investment                   Jan 21
Muirhead                                Jan 14
South African Land & Expltn.            Jan 21
Southvaal                               Jan 21
Tate and Lyle                           Jan 20
Vaal Reefs Exploration and
  Mining                                Jan 21
Western Deep Levels                     Jan 21
Westminster Property                    Feb 3

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1662 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Share Stakes

SECTION: SECTION II; Pg. 23

LENGTH: 13 words


Burton Group -- Mr Cyril Spencer, director, sold 100,000 ordinary shares.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1663 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Share Stakes

SECTION: SECTION II; Pg. 23

LENGTH: 30 words


Burco Dean -- Charente Steam Ship Company has increased its shareholding to
2,346,000 ordinary shares (27.73 per cent) by the purchase of a further 150,000
ordinary shares.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1664 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Share Stakes

SECTION: SECTION II; Pg. 23

LENGTH: 27 words


Harvey and Thompson -- A total of 600,875 shares (19.11 per cent) were acquired
at 53 1/2p by Dunbar and Co on behalf of investment clients and an associate.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1665 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Share Stakes

SECTION: SECTION II; Pg. 23

LENGTH: 28 words


Vosper -- Sir David Brown as a result of dealings in the ordinary shares on
December 14 total number of ordinary shares in which he is interested is now
2,613,831.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1666 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Share Stakes

SECTION: SECTION II; Pg. 23

LENGTH: 21 words


Standard Fireworks -- Prudential Corporation report that Prudential nominees now
hold 152,500 ordinary (6.1 per cent).

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1667 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Share Stakes

SECTION: SECTION II; Pg. 23

LENGTH: 23 words


Glasgow Pavilion -- James Glasgow's associated companies are registered in the
company to a total of 263,450 shares (21,935 per cent).

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1668 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Share Stakes

SECTION: SECTION II; Pg. 23

LENGTH: 24 words


Headlam Sims and Coggins -- Associated Investments are acquired further 10,000
ordinary shares bringing holding to 313,500 (10.74 per cent).

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1669 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Share Stakes

SECTION: SECTION II; Pg. 23

LENGTH: 25 words


Deanson (Holdings) -- Wesleyan and General Assurance Company has acquired 97,000
shares and Mr C. G. R. McMahon has disposed of 300,000 shares.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1670 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Share Stakes

SECTION: SECTION II; Pg. 23

LENGTH: 27 words


Sturla Holdings -- Park Place Investment has disposed of 450,000 ordinary shares
reducing holding in Sturla to 2,150,000 ordinary shares (8.24 per cent).

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1671 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Share Stakes

SECTION: SECTION II; Pg. 23

LENGTH: 49 words


Clifford's Dairies -- Shareholdings on January 1 1982 of directors appointed
with effect from that rate are as follows: C. G. Burton 500 ordinary and 125 "A"
non-voting; P. S. Candy 66,000 and 224,000; H. Mercer 66,000 and 139,000; J.
Pasfield 250 and 250; R. D. Smith 51,500 and 103,500.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1672 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Share Stakes

SECTION: SECTION II; Pg. 23

LENGTH: 20 words


Drayton Consolidated Trust -- The Standard Life Assurance Company holds
1,868,877 ordinary shares (5.66 per cent).

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1673 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Share Stakes

SECTION: SECTION II; Pg. 23

LENGTH: 30 words


James Finlay: John Swire and Sons acquired 30,000 ordinary (.052 per cent) and
hold 17,343,822 ordinary (30.049 per cent) -- representing 29.945 per cent of
the voting rights.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1674 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Share Stakes

SECTION: SECTION II; Pg. 23

LENGTH: 30 words


Chepstow Racecourse: Cambrian and General Securities has sold its holding of
6,000 shares (5.4 per cent) and Moorside Trust has sold its holding of 6,830
shares (6.1 per cent).

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1675 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Share Stakes

SECTION: SECTION II; Pg. 23

LENGTH: 16 words


G. H. Clay, chairman, has purchased 3,550 shares and G. C. Francis, director
1,269 shares.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1676 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Share Stakes

SECTION: SECTION II; Pg. 23

LENGTH: 30 words


Hallite Holdings: General Tire and Rubber Co. (South Africa) acquired a further
188,200 shares on January 4, 1982, bringing their holding to 686,237 shares
(28.56 per cent).

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1677 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Share Stakes

SECTION: SECTION II; Pg. 23

LENGTH: 16 words


Elliot Group of Peterborough: Jenks and Cattell acquired 100,000 Elliott group
at 38 1/2p.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1678 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 7, 1982, Thursday

Share Stakes

SECTION: SECTION II; Pg. 23

LENGTH: 26 words


John Folkes Hefo: chairman, C. J. Folkes, acquired 644,500 non-voting ordinary
shares making holding of non-voting and ordinary shares 6.14 per cent.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1679 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Reagan demands 'tangible' allied moves on Poland

BYLINE: BY REGINALD DALE, U.S. EDITOR, IN WASHINGTON

SECTION: SECTION I; Pg. 1

LENGTH: 406 words

HIGHLIGHT: President Ronald Reagan yesterday called for an immediate "tangible"
response by the Nato allies to the Polish military crackdown.  But there was no
sign that, in talks in Washington, he had persuaded Herr Helmut Schmidt, the
West German Chancellor, to follow the U.S. and impose sanctions on the Soviet
Union.


Mr Reagan evidently felt that the Community's response had not been strong
enough and called for "forceful Western measures." If the West failed to insist
that the Soviet Union stop "pressuring Poland directly or indirectly" there
would be the gravest consequences for international relations, Mr Reagan said.

Both leaders stressed the importance of allied and German-American solidarity at
what Mr Reagan called "a critical moment in world affairs." It was clear, too,
that they shared the same three objectives in Poland - the lifting of martial
law, the release of all detainees and the resumption of a "national dialogue."

But Mr Reagan's stern warning of the need to put tangible pressure on Moscow in
order to achieve this received little echo from Herr Schmidt.  The chancellor
said only that he had acted as a representative of the EEC countries to relay to
Mr Reagan Monday's statement by the Community's foreign ministers in Brussels.

The statement - since rejected by Greece - agreed not to undercut U.S. sanctions
but did nothing to introduce EEC sanctions.  It had been welcomed by Mr Reagan,
Herr Schmidt said.

The U.S. State Department repeated yesterday that while European sanctions need
not match American actions precisely, Washington wanted "parallel measures" from
its allies.

Many Reagan Administration officials are afraid that Moscow, through its tactic
of sweet talk to Bonn and tough talk to Washington, will succeed in creating
serious strains in the alliance - a view not shared by Herr Schmidt.

The Americans also fear that if the Europeans are not seen to be following the
U.S. in imposing sanctions, American public opinion will become even further
disillusioned with them - and the whole American commitment to Western Europe
could be endangered.

Herr Schmidt, however, said earlier this week that the differences in the
alliance over Poland were of a "routine" nature.

Before meeting Mr Reagan, he rejected American criticism that West German policy
had been too mild towards Moscow.

Mr Reagan said he had discussed the extent of Soviet involvement in Poland with
Herr Schmidt and the need for "both Poland and the Soviet Union" to lift martial
law in Poland.  While the U.S. Administration sees Moscow's hand firmly guiding
events in Poland, the West Germans tend to believe that the Polish authorities
moved on their own initiative to head off Soviet intervention.

LANGUAGE: ENGLISH

GRAPHIC: Picture, Mr Ronald Reagan

                   Copyright 1982 The Financial Times Limited


                             1680 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Mexico bows to pressure for cheaper oil

BYLINE: BY RAY DAFTER, ENERGY EDITOR, IN LONDON

SECTION: SECTION I; Pg. 1

LENGTH: 624 words


MEXICO has cut the price of its heavy crude oil by $2 a barrel - from $28.50 to
$26.50 - following pressure from international oil companies.  The price
reduction, effective from January 1, is a significant pointer to the continuing
surplus of supplies.

Industry reports yesterday said that Algeria - one of the most hawkish members
of the Organisation of Petroleum Exporting Countries - had also decided to cut
the price of its light oil - by 50 cents a barrel to $37, although refining
companies maintained that the price was still too high in view of the depressed
demand for products such as petrol, heating oil and boiler fuel.

The Mexican move, follows a spate of smaller price cuts made last week in the
wake of the December Opec ministerial meetings, and relates only to its heavy
Maya crude, one of the thickest and most expensive-to-refine grades of oil
traded extensively in the international market.  The lighter, more attractive
Isthmus crude will continue to cost $35 a barrel.

However, as Mexico exports all of its crude as a 50-50 mixture of light and
heavy grades the average price of the country's oil has been reduced by $1 a
barrel.  Pemex, the state oil corporation, said the prices would be reviewed at
the end of March.

Officials of oil companies in Europe and the U.S. said that Mexico had been
forced to respond to market pressures.  The heavy crude, used mostly for making
fuel oil burned by industry and electricity generating stations, had become
seriously overpriced.

In the U.S., the biggest market for Mexican exports, the demand for heavy fuel
oil early last month was 27 per cent down on the corresponding period of 1980.

Earlier this week, another producer of very heavy crude - Venezuela - announced
price cuts ranging from 29 to 90 cents a barrel.

Mexico, which is not a member of Opec, has become a growing force in the
international oil market.  Itsexports have contributed to the weakening of
Opec's position and to the general reduction in world oil prices over recent
months.

Industry analysts said yesterday that with little growth in demand expected
during the coming 12 months, further price cutting might occur, particularly by
producers of crudes at the lighter and heavier extremes.

Opec members - other than Saudi Arabia - faced a 26.3 per cent decline in their
production levels in 1981 as against 1980.  Overall Opec production in 1981
dropped by 16.9 per cent to 22.35m b/d compared with 26.89m b/d in the previous
year.  Four years ago, Opec was producing well over 31m b/d.

William Chislett writes from Mexico City:

Mexico is currently exporting about 1.3m b/d and is forecast on present
performance to earn about $17bn from oil exports this year.

The price of Mexico's oil is a highly nationalistic issue.  The last price
reduction, in June, provoked such a furious political storm that Sr Jorge Diaz
Serrano, the head of Pemex, was forced to resign.  He reduced the price of the
Isthmus oil by $4 a barrel.When Pemex mounted an unsuccessful action to push the
price back up $2 a barrel, oil companies reduced their shipments.
     How oil prices have fallen
Grade (degrees API)    Jan     Oct
                      1982    1981
S. Arabia:            ($ per barrel)
 medium 31             32.40   33.00
 heavy 27              31.00   31.50
 light 34              34.00   34.00
Kuwait: 31             32.30   33.00
Iran: heavy 31         32.30   33.00
Iraq:
 Basrah (Gulf) 35      33.46   33.96
Abu Dhabi:
 Murban 39             35.50   35.70
Algeria:
 Saharan 44            37.00   37.50
Libya: Amna 36         35.60   36.80
 Zueitina 41           37.00   37.50
North Sea:
 Flotta 35.6           35.25   35.50
Venezuela:
 Cambimas 20.6         29.62   30.52
Mexico: May a 23       26.50   28.50

Source: Petroleum Intelligence Weekly and industry sources.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1681 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Turkish coffee break is over

BYLINE: By Metin Munir in Ankara

SECTION: SECTION I; Pg. 1

LENGTH: 385 words


IF THE life of the Turkish economics crisis, like that of T. S. Eliot's J.
Alfred Prufrock, is measured out with coffee spoons, it has come to an end: the
ban on the import of coffee, which was introduced in 1978, when the country's
severest economic crisis set in, was lifted yesterday.

The ban was imposed because Turkey was short of cash, but it did not remain in
effect for as long as it did for the same reason.  Although things improved
quite remarkably last year, the coffee ban was kept as a symbol of national
sacrifice and stiff upper lip.

On his missions abroad to raise credits Mr Turgut Ozal, Turkey's economic
planner, often cited the sacrifice of coffee as a symbol of the discipline
Turkey had imposed upon itself to beat the crisis.

Unlike Turkish delight or the Turkish bath, Turkish coffee is not indigenous to
Turkey.  It is imported.

The Government's decision to resume coffee imports is apparently meant to signal
to Turks that things are looking up.

Mr Kemal Canturk, the Minister of Trade, who announced the lifting of the ban,
said "1981 has been a successful year for our economy."

Exports in the first 11 months of last year had grown by 65 per cent to $4.06bn
and would surpass $4.5bn for the year as a whole, he said.  Imports in 1981
would be $8.8bn compared with $7.67bn in 1980.  The import target for 1982 was
$10bn.

Some of this will go towards the purchase of about 10,000 tons of coffee.

"Our creditors may not want it but we have decided to drink coffee again," wrote
a newspaper several days ago.

It was not the first time in their history that Turks had to go without their
beloved coffee - drunk in small cups sade (without sugar), orta (with some
sugar) or sekerli (with a lot of sugar) and whose grounds are used to tell
fortunes.

Coffee appeared in Turkey in 1543 and soon became so popular that it created
resentment among conservative people and was prohibited.

It was re-allowed in 1592 and forbidden again in 1633, "less because the
government considered the drink itself to be particularly noxious than because
coffee houses were haunts of pleasure, vice and potential sedition," the
newspaper said.

"Opium, laudanum and similar drugs, while disapproved of as harmful in excess,
never suffered the same ban."

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1682 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Papandreou 'will not be bound by EEC stand'

BYLINE: BY VICTOR WALKER IN ATHENS

SECTION: SECTION I; Pg. 1

LENGTH: 425 words


THE GREEK Government announced last night that it would not be bound by a
European Community declaration which condemned the military takeover in Poland
and pressure from the Soviet, Union, and which warned of possible economic
sanctions.

The statement followed the summary and public sacking in a television news
bulletin at midnight on Monday of Mr Assimakis Fotilas, deputy Foreign Minister,
who signed the declaration earlier in the day on behalf of Greece.

Mr Fotilas was dismissed only hours after endorsing a communique at the end of
the EEC foreign ministers meeting in Brussels that condemned the role of the
Soviet Union, and other East bloc countries, in the Polish crisis.

Mr Fotilas, who represented Greece at the meeting because of other commitments
by the Foreign Ministers, Mr Ioannis Haralambopoulos, had earlier joined France
in blocking a plan to send the Belgian Foreign Minister, Mr Leo Tindemans, to
Warsaw and Moscow.  He had also held out successfully against any EEC policy of
sanctions against the Soviet Union.

In an action said to have no precedent in minister's instant dismissal was
announced on the midnight television news.  There had bee no government
statement to the press, and it is not known whether Mr Fotilas himself was told.

The Greek Government, despite goading by opposition parties, has refused to join
in any condemnation of events in Poland, but has instead restricted itself to an
expression of "grave concern and deep grief."

It also held out against opposition demands for a debate on Poland in the Athens
Parliament.

The government spokesman, Mr Demetrios Maroudas, yesterday refused to elaborate
on a laconic statement, issued after the television announcement, that the
Premier had sacked Mr Fotilas for failure to follow the instructions of the
Foreign Minister at the EEC meeting.

Later, he said that Greece was not bound by the communique signed by Mr Fotilas.
"The communique issued by the EEC Council of Ministers does not bind the Greek
Government despite its having been signed by Mr Fotilas.  This was exactly the
reason that he was dismissed.  He had failed to obey orders given to him," Mr
Maroudas said.

Mr Fotilas is certainly a political unfortunate.  Before the October elections,
he gave up the safe seat he had in Patras for four years to clear the way for
the election to Parliament of Mr Goerge Papandreou, the Premier's son.  Mr
Fotilas settled for a seat in the European Parliament, then gave the up also to
become Foreign Undersecretary.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1683 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Kaufman warns on rising interest rates

BYLINE: BY DAVID LASCELLES IN NEW YORK

SECTION: SECTION I; Pg. 1

LENGTH: 395 words


A WARNING that 1982 will be a year of volatilf and rising U.S. interest rates
because of huge credit demands from Government and business was issued yesterday
by Dr Henry Kaufman, the chief economist at Salomon Brothers.

Dr Kaufman's predictions, always the most widely watched on Wall Street,
immediately depressed the stock and bond markets even though they differed
little from the consistently gloomy view he has taken for some time.

Unlike previous years when he confidently and usually correctly predicted that
interest rates would set new records, Dr Kaufman yesterday forecast only that
long term interest rates in the bond market would "threaten" the highs they set
last year.  He doubted that the prime rate would exceed the 21 1/2 per cent peak
it reached a year ago.

The main points in his forecast are:

* The U.S. budget deficit will rise to a record $90bn, forcing the Treasury to
raise unprecedented amounts of money on the credit markets.

* The corporate sector's demands will also be strong because business will not
be able to generate enough capital internally to meet its needs, which will be
unusually high.

* The economic recovery will be modest because of high inflation and interest
rates, and poor liquidity in key sectors of the economy.  He sees nominal gross
national product (GNP) rising 8.5-9 per cent and real GNP only one per cent.

* Inflation measured by the GNP deflator will rise 8-8.5 per cent, down a point
or two from this year, but he warned this drop might only be temporary, the
trend rising in the second half of the year.

* Total net demand for credit will grow by $50bn to $468.4bn, and much of the
increase will be financed by direct household investment, mainly through the
money market funds.

Dr Kaufman stressed that while the prime rate and the Fed funds rate get all the
publicity, the key to the financial outlook is the long-term bond rate because
this determines whether borrowers can raise long-term finance and offload the
vast amounts of short-term debt they have accumulated in recent years

Dr Kaufman also said much would depend on whether the Federal Reserve returned
to the strict monetarist approach which he thinks it has eased it recent months
to help the economy.  If it does, the targets set for money supply growth will
not leave much room for economic expansion.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1684 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

McDonnell Douglas to discuss DC-10 wing slats with airlines

BYLINE: BY PAUL BETTS IN NEW YORK

SECTION: SECTION I; Pg. 1

LENGTH: 399 words


McDONNELL DOUGLAS, the U.S. aerospace company, will hold a special meeting next
week with the 45 operators of its DC-10 wide-body airliner to discuss possible
changes to improve the DC-10's wing slat system, which is crucial in landing and
take-off operations.

The meeting on January 14 at the company's Long Beach, California, headquarters
will discuss findings of an ivestigation by the company and the U.S. National
Transportation Safety Board into an accident involving an Air Florida DC-10 in
Miami last September, when an engine broke up just before take-off.

The accident, in which no one was injured, and the ensuing investigation has
been yet another setback for McDonnell Douglas's troubled wide-body airliner.

Demand for the aircraft has slumped ever since the crash of an American Airlines
DC-10 at Chicago's O'Hare International Airport on May 25, 1979, in which 273
people were killed.  The crash was the worst disaster in U.S. aviation history.

In Chicago, an engine broke from its wing mounting just after the plane had
taken off.  This also apparently caused a malfunction in theleading-edge flaps.

In Miami, an engine fell to pieces and also caused a malfunction in the wing
slat system.  An investigation is still being conducted into the causes of the
engine break-up.  But it appears that some foreign object may have been sucked
into the engine.

McDonnell Douglas confirmed yesterday that the company had called all DC-10
operators to attend the meeting in Long Beach next week.  He said this was not
an uncommon action to take and that aircraft manufacturers regularly considered
changes and updates in an aircraft as there was always room for improvement.

But the meeting does come at a difficult time for the company whose DC-10 order
book has also been hit by the general slump in the airline industry.  Moreover,
the Reagan Administration has dealt the company another blow by indicating that
it plans to terminate the KC-10 programme involving a military tanker version of
the DC-10.

In response to the Administration's proposal, which could still be reversed by
Congress, McDonnell Douglas has warned that if the programme was scrapped the
company would consider ending DC-10 production.

Last month, Lockheed anounced that it was phasing out production of its
financially troubled L-1011 TriStar wide-body aircraft programme.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1685 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Solidarity leaders may face exile

BYLINE: BY OUR FOREIGN STAFF

SECTION: SECTION I; European News; Pg. 2

LENGTH: 536 words


POLAND'S MILITARY Government is considering exiling to the West some former
Sildarity free trade union leaders, General Wojciech Jaruzelski hinted to EEC
ambassadors during his meeting with them on Monday.

"There is no place for Solidarity extremists in Poland," he told the
ambassadors.  But he did not indicate whether Mr Lech Walesa, the union's head,
was included among those interned leaders which the regime is anxious to expel.
Mr Walesa's resfusal to negotiate with the martial law authorities except in the
presence of all other members of the Solidarity praesidium is believed to be a
serious embarrassment to the regime.

Mr Walesa is reported to have been under considerable psychological pressure
designed to persuade him to denounce "extremists" within the Solidarity union
and agree to negotiate with the authorities as a moderate leader.

Mr Walesa, however, still remains their best hope of re-establishing some form
of future co-operation with what remains of the Solidarity union when martial
law is removed.

The ambassadors are understood to have reported back to their foreign ministers
meeting in Brussels that the General had told them he would "have no objection"
if Western counties agreed to accept those Solidarity leaders which the
authorities may wish to expel.

According to Community diplomats, Gen Jaruzelski repeated assurances that the
regime did not intend to turn the clock back in Poland, but he gave the
impression that martial law would remain in force for a considerable time.
While some trade union leaders would be released if they promise to refrain from
"subversive activities," others would remain in prison, he added.

The ambassadors were said to have made no comment on the General's hints about
expulsions, but Western diplomats take the possibility seriously.  Widespread
expulsions of Solidarity activists would be seen as a cynical denial of all
assurances that the military regime does not intend to kill the reform movement.

Hints of new moves against Solidarity leaders came as Lord Trefagarne, Minister
of State at the UK Foreign Office, called in Mr Stanislaw Staniszewski, the
Polish ambassador to London, to protest against the total jamming of BBC polish
language broadcasts.

BBC enginers report that the jamming comes from Soviet transmitters in Smolensk
and Kaliningrad.  Partial jamming started on December 30 but was stepped up to
cover all short-wave Polish language broadcasts yesterday.  Soviet transmitters
regularly jammed BBC Polish language broadcasts between 1956 and 1963.  BBC
Polish language transmissions were increased from 21 to 26 hours a week on
December 22.

Meanwhile, the Yugoslav Communist newspaper Borba yesterday confirmed reports of
a widespread purge of the Polish Communist Party in a report from Warsaw.  It
also said that the authorities were having trouble suppressing underground
activity by Solidarity while many party members were turning in their cards out
of conviction that the party had lost the faith of the nation.

* Mr Zbigniew Iwanow, a well known reformist member of the Polish Communist
Party, has died after being beaten up, according to reliable reports reaching
London.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1686 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Bankers to meet on debts

BYLINE: By Peter Montagnon, Euromarkets Correspondent

SECTION: SECTION I; European News; Pg. 2

LENGTH: 262 words


A SMALL group of international bankers is to meet in London tomorrow for a
further round of talks on Poland's debt problems.

But the meeting, which is expected to be very short, is intended to concentrate
on technical details related to the legal documentation of the proposed
agreement to allow Poland to defer repayment of loans falling due last year to
some 500 commercial banks.

Wider issues, such as the course of action to take on loans falling due this
year, will be aired only in a very informal way, Western bankers said yesterday.

Proper discussion of these issues would require a meeting of the full task force
of international banks which has been spearheading the negotiations with Poland,
preferably with the participation of Polish government officials.

No such meeting has been called as yet, the bankers said, although there is
growing pressure for the Polish Finance Ministry to be invited to attend such a
meeting.

Meanwhile, maturities falling due this year are expected to be extended
informally pending new discussions, ust as those falling due last year were
treated while the rescheduling arrangement was under negotiation.

The Soviet Union said yesterday that Mr Jozef Czyrek, Poland's Foreign Minister,
will visit Moscow within the next 10 days, writes our Moscow correspondent.
Apart from a routine visit by the Polish Foreign Trade Minister before
Christmas, Mr Czyrek will be the first known high-ranking Polish Government and
party official to go to the Soviet capital since the military clampdown on
December 13.

LANGUAGE: ENGLISH

GRAPHIC: Illustration, no caption

                   Copyright 1982 The Financial Times Limited


                             1687 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

West carried away on a wave of wishful thinking

BYLINE: Leslie Colitt

SECTION: SECTION I; European News; Pg. 2

LENGTH: 575 words

HIGHLIGHT: Leslie Colitt gives his own view of events in Poland


AFTER SPENDING many weeks in Poland before and since the "Gdansk August" of
1980, I have concluded that Western assumptions about the country's future are
largely based on wishful thinking.

Before December 13, 1981, Western politicians thought the Polish Communist Party
was capable of reform because it said it was.  They also believed Solidarity
could take a moderate course, forgetting that the union felt cheated of power
and mortally threatened by a party which saw its own existence endangered.

Western governments and bankers thought wide reaching economic reform were just
around the corner in Poland and would somehow save the country from defaulting
on its loans.

Today the West's attitude again rests mainly on hopes, this time about what the
military government in Warsaw will achieve.  However, it still ignores the key
factor in the Polish equation -- 36m Poles, 9m of whom were members of
Solidarity.

After martial law was imposed in Poland, many Westerners seemed relieved to hear
the military government had merely "suspended" Solidarity and would soon
resurrect a new union cleansed of "adventurers."

When it became apparent Solidarity was being smashed, Western politicians
appealed to the authorities to show their good faith and negotiate with the
dismembered union.  And would they please give a date when martial law would be
lifted?

The military, responding with a straight face, indicated it was trying to talke
with Mr Lech Walesa, but that he was proving stubborn.  As to ending martial
law, this depended on how quickly "normalisation" could be completed.

Just in case this would take a while, Warsaw began to describe the military
government as "Communists in uniform."

How was one to react to this farcical tragedy?  The West could not have done
worse than it has.  It had 16 months in which to draw up a co-ordinated response
to just such a military crackdown in Poland.

Instead, Washington cried wolf until it was hoarse while Soviet divisions
manoeuvred on Poland's borders.  The State Department chose to ignore the advice
of a young American diplomat in Warsaw who had forecast just such a military
takeover.

The West was caught not with its trousers down but wholly naked.  President
Reagan's economic counter-measures backfired before they were put into effect.
Moscow and its allies were gleefully quoting Western European politicians on the
futility of the sanctions.

The reactions by Western European leaders were hardly calculated to gain the
respect of ordinary Poles who had their own ideas about how the West should
respond.  But even if a massive response was out of the question, the spectacle
of so many politicians alternately moaning and shrugging their shoulders was
depressing.

Yet optimism springs eternal . . . the authorities in Warsaw have now promised
that the economic reforms will be introduced shortly.  And this has again
encouraged the West which was growing despondent about the prospects.

Just how a genuine economic reform -- apart from price increases -- is to be
achieved with [TEXT ILLEGIBLE] regimented and despondent population robbed of
all initiative defies the imagination.

The West will have to deal with the new Polish leadership just as it did with
Poland's past Communist rulers.But it would be dangerous for it to forget the
aspirations of the Polish people who ultimately will determine the future of
their country.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1688 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Basques suspected of Bilbao kidnap

BYLINE: By Robert Graham in Madrid

SECTION: SECTION I; European News; Pg. 2

LENGTH: 313 words


A GERMAN-BORN Basque businessman, Sr Jose Lipperheide, was yesterday kidnapped
from his home in a Bilbao suburb in an operation that bore the hallmarks of the
militant separatist organisation, Eta.

Sr Lipperheide's chauffeur was forced at gunpoint to let the kidnappers into the
businessman's house.  Sr Lipperheide, aged 75, came to Bilbao from Germany over
50 years ago and is the uncle of a prominent member of the Banco de Vizcaya.

There is no suggestion, however, that the kidnap is connected with ransom
demands on the bank.Until now, neither of the two big Basque banks has been
threatened for money by Eta.  Traditionally, kidnap has been one of the methods
used by the political-military wing of Eta, but in the wake of last February's
abortive coup, the latter declared a truce, which has been generally observed.

The kidnap has added tension to the New Year in the Basque Country, which has
already seen its first violence of 1982.  In separate incidents, a taxi driver
has been murdered and two people seriously injured by Guardia Civil gunfire.
The taxi driver's death has been claimed by a group known as Triple A, believed
to be an ultra-right-wing organisation.  It claimed in a call to a local Basque
paper that the driver had been killed by mistake because of an error of
identity.

The two people injured, an old man and a six-year-old child, were struck by
gunfire when Guardia Civil came across the tail end of a demonstration outside
San Sebastian.  The incident has been denounced by the civil governor of
Guipuzcoa.  Both the Interior Ministry and the Guardia Civil are investigating
it with a view to punishing those responsible for the shooting, it was announced
yesterday.

Meanwhile, police have established no lead in the Christmas kidnap of the father
of the Spanish singer, Julio Iglesias, which is not thought political.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1689 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

French reduce rate of rise in unemployment

BYLINE: BY DAVID HOUSEGO IN PARIS

SECTION: SECTION I; European News; Pg. 2

LENGTH: 219 words


FRENCH UNEMPLOYMENT continues to rise, but the rate of increase has slowed down
considerably over the last two months.

Provisional figures show that the number of unemployed on an unadjusted basis
rose in December to 2,019,000 - an increase of 0.14 per cent over the previous
month. The equivalent increase in November was 0.7 per cent, compared with a 4.7
per cent rise in October.

The number of unemployed remains, however, 23.7 per cent higher than a year ago.

The Government's goal is to stabilise unemployment this year, which on present
demographic trends will require the creation of about 250,000 additional jobs.
Most non-official forecasts published to coincide with the New Year, predict
that this target is not achievable.

A widely quoted figure is that unemployment will rise a further 100,000 in 1982,
with a rate of economic growth closer to 2.5 per cent than the target of 3.3 per
cent set by the Government.

The Government's hopes for holding unemployment at present levels lie largely
with the work-sharing arrangements it has proposed in industry.

The authorised working week is being shortened to 39 hours from 40 hours from
February 1 as part of these plans.

On a seasonally adjusted basis French unemployment rose by 1.6 per cent in
December to 1,876,000.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1690 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Spreading the risks more thinly

BYLINE: By Kevin Done in Frankfurt

SECTION: SECTION I; European News; Pg. 2

LENGTH: 2120 words

HIGHLIGHT: Energy Review: German Energy Policy


"FORECASTING is the art of knowing where to scratch before it starts to itch,"
said a West German Federal Economics Ministry official in an aside as the
Government revealed its revised energy programme recently, the first
comprehensive re-statement of policy since 1977.

Having twice been caught scratching in the wrong place since the first oil
crisis in 1973-1974, however, Bonn has learned its lesson.  The country's
overwhelming dependence on imported energy, the Achilles heel of the West German
economy remains, but the Government has given up its vain attempts at
quantifying the Federal Republic's future energy needs.

Bonn has discovered, belatedly, the folly of wandering into the minefield of
energy forecasting, but it has been powerless to disguise the vulnerability
which arises from the Federal Republic's need to import nearly two-thirds of its
energy requirements.  With a proverty of domestic natural resources the massive
increase in the price of energy over the past eight years has bitten deeply into
the country's prosperity.

Last year as much as 5 per cent of West Germany's gross national product will
have had to have been spent on net energy imports compared with 4.3 per cent in
1980, 3.4 per cent in 1979, 2.4 per cent in 1978 and only 1 per cent in 1972.
The net energy import bill is expected to have risen to around DM 75bn (more
than £17bn) in 1981 against DM 64.6bn in 1980.  In 1978 the bill for energy
imports (net) totalled DM 31bn and in 1972 it amounted to only DM 8bn.

A surplus of DM 18.5bn on the current account in 1978 was transformed into a
deficit of nearly DM 30bn in 1980 -- there was a deficit of DM 23.4bn in the
first 10 months of 1981.  According to the Bundesbank, the West German central
bank, blame for more than half of the "swing" of DM 48bn between 1978 and 1980
can be placed at the door of higher energy prices.

West Germany lives largely on its ability to export manufactured goods.  Today
the workforce that produces those goods is having to accept a lowering of its
living standards to pay for the transfer of wealth that is occurring because of
the burden of higher energy prices.  Around 20 per cent of the country's exports
are needed to pay for the energy import bill against 11 per cent in 1978 and
only 6 per cent in 1972.

Energy imports in 1980 cost DM 77bn -- offset by energy exports of less than DM
13bn -- and the cost of imported energy was expected to rise to some DM 90bn
last year, despite a significant cut in volumes.  Energy accounted for 23 per
cent of all West Germany's imports in 1980 compared with only 9.5 per cent in
1972.

Since the first oil crisis Bonn has given a clear priority in its energy
policy-making to reducing the dangerous dominance of oil in the economy.  At the
same time it has committed itself strongly and at considerable expense to
expanding the role of coal -- especially domestic coal -- and to cutting energy
waste through encouraging investment in energy conservation and in measures to
ensure the more efficient use of fuels.

These polices -- pursed steadfastly enough since 1974 -- have been accompanied
by an often wavering commitment to nuclear power.  The credibility of the whole
policy edifice has been undermined and the Government's real commitment to
cutting oil imports thrown into doubt by its uncertain handling of the nuclear
issue.

The stumbling in Bonn has been thrown into a particularly sharp light by the
success of neighbouring France in pursuing the nuclear alternative.

The anti-nuclear opposition in the Federal Republic has lost none of its force
-- witness only the violent clashes at the construction site of the Brokdorf
nuclear power station in northern has clearly decided that the time has come to
start steering the country firmly back on to the nuclear track.  The delays of
the last six years will never be made up, but at least the much slower than
expected growth in energy demand has reduced the penalty for procrastination.

The Government's revamped energy policy is in many respects merely the old
mixture as before, but not on the nuclear issue.  The language is couched with
care so as not further to arouse the anti-nuclear lobbies in the parties of the
ruling Social Democrat-Free Democrat coalition.  The passages on nuclear energy
were changed most often before the policy document received Cabinet approval --
but the new commitment to nuclear power is unmistakable.

Gone is the formulation of the last energy programme which spoke only of a
"limited expansion of nuclear energy . . . if the means of reprocessing and
waste disposal are adequately safeguarded." There is also no trace of FDP and
SPD party conference resolutions which in the late 1970s bound the parties to
allotting to nuclear energy no more than the role of meeting "residual demand,"
and which asserted that the option should be opened of abandoning nuclear energy
altogether.

The Government's newly discovered zeal for the nuclear cause appears to derive
from its growing concern that the competitiveness of German industry could be
endangered if power prices in the Federal Republic rise way above levels in
neighbouring countries.

Companies in the energy-intensive chemicals sector, one of the main pillars of
German industry, have already complained that they are forced to pay 25 per cent
more for electricity than their rivals in France.

Bonn's revised energy programme admits that "a larger constribution from
favourably-priced nuclear power would strengthen the competitiveness of German
industry. . . .  The present contribution of nuclear power as well as planning
and building lead-times do not meet the demands of energy and industrial policy.
. . .  There are clearly fewer base-load power stations available today for
generating power at favourable costs around the clock than are necessary in the
interests of holding power prices at internationally competitive levels."

The Economics Ministry estimates that there is a shortage of as much as 9,000 MW
of base-load capacity.  There is virtually no potential for expansion of the
other two sources of base-load power, lignite and hydro - electricity, which
appears to leave little alternative to building more nuclear power stations.

The Government has refused to set any formal targets, having been proved so
wrong in the past.  In 1974 when it first set about revising its energy
programme in the wake of the oil crisis, it worked out itself all the estimates
for future energy supply and demand.

By 1977 and the second update, it had been sufficiently chastened to hand the
main energy forecasting job to a group of economic institutes, providing only a
base with its its own broad assumptions for future economic growth.  This time
Bonn shied even at this responsibility and gave the institutes an entirely free
hand, loudly disclaiming all rights to authorship of the forecasts that
accompany its policy document.

In its first revised energy programme, published in 1974, Bonn was sufficiently
foolhardy to set the ambitious target of having 45-50,000 MW (megawatts) of
nuclear power installed by 1985.  That programme has been thrown hopelessly off
course and the best that can be hoped for by 1985 is an installed capacity of
18,000 MW.

West Germany currently has some 9,000 MW of nuclear capacity in operation,
generating around 13 per cent of the country's power needs and accounting in the
first nine months of 1981 for 4.8 per cent of primary energy requirements.  A
further 11,200 MW of capacity is under construction and work on another 1300 MW
reactor at Wyhl near the French border has been stopped by the local utilities
pending the outcome of court hearings that have been under way since 1977.

The authorities and the nuclear industry still face considerable obstacles in
completing this programme and in pushing through projects in other parts of the
nuclear fuel cycle.  A site is still to be found for the country's first plant
for reprocessing spent nuclear fuel, permissing is still to be given for the
building of the first interim storage site for nuclear waste, and the DM 8.4bn
advanced reactor development programme involving the construction of the
controversial fast breeder and high temperature reactors is threatening to grind
to a halt through shortage of finance arising from massive delays and a
horrendous escalation of costs.

The nuclear programme is certainly not out of the wood yet, and it remains to be
seen if recent executive moves to streamline the regulatory procedure will have
any practical impact on building times, but Chancellor Helmut Schmidt can
certainly claim that the Government's support for the expansion of nuclear power
is now unequivocal.  Bonn can claim success, too, on other important parts of
the energy front.

Substitution through other fuels, chiefly coal and gas, progress in energy
saving and weak economic activity has helped to push back the share of oil in
total primary energy consumption to around 45 per cent last year compared with
47.6 per cent in 1980 and a peak of 55.2 per cent in 1973.  Oil consumption was
down by about 13 per cent last year, and the volume of crude oil imports has
fallen by 19 per cent.  (Higher prices still ensured a 13 per cent rise in the
crude oil import bill to DM 41.25bn in the first 10 months of 1981, however.)

West Germany has also managed to break the old matching link between economic
growth and growth in energy demand.  From 1973 to 1982 primary energy
consumption increased by only 3.1 per cent, while the Federal Republic's GNP
grew in real terms by 17.5 per cent.

West Germany has succeeded, too, in halting the apparently irreversible decline
in the output of coal, the only abundant domestic source of energy.  (Proven
reserves of coal at more than 24bn tonnes could last 300 years at current
production rates.) Restoring the industry's fortunes is proving a costly
process, however -- the fall in output was arrested in 1979, the end of a long
decline since the mid-1950s, and production has stabilised at around 90m tonnes
of coal equivalent (tce) -- but the industry swallowed DM 6.3bn in state
financial aid in 1980.

The tightening squeeze on public expenditure can hardly allow continuing support
on this scale and investment subsidies already have been chopped to only DM 150m
in this year's federal budget compared with a level of around DM 800m in the
late 1970s.  The industry has warned recently that aid at this level will
jeopardise its ambitious plans for pushing production back up to around 100m tce
a year by the end of the century.

The door was opened last year, however, to a gradual increase in coal imports,
and West Germany has also had success in diversifying its existing sources of
imported energy.  The share of the Opec (Organisation of Petroleum Exporting
Countries) states in West German crude oil imports has been cut to around 73 per
cent compared with 96 per cent in 1973, with North Sea oil now meeting 20 per
cent of supplies.

The signing of the controversial new natural gas supply contract with the Soviet
Union last November is also seen by Bonn as a further diversification of its
overall energy supplies.  The share of Russian gas in the country's consumption
will jump from around 17 per cent to some 30 per cent by the late 1980s, but the
share in total energy demand will increase only from 3 per cent to just under 6
per cent.  (The Soviet Union also currently supplies about 50 per cent of West
Germany's uranium enrichment services and about 3 per cent of its crude oil
needs.)

The opposition to the deal aroused in the U.S. because of the military takeover
in Poland and fears of Bonn being laid open to political blackmail from Moscow
is a graphic reminder of how exposed the jugular vein of West Germany's energy
supplies remains, however.  The risks can hardly be reduced, Bonn can only seek
to spread them a little more thinly.
        SOURCES OF WEST GERMAN ENERGY
                  1973    1980    1973   1980
                  million tonnes    % share of
                 coal equivalent  total energy
DOMESTIC
Coal                74.7    66.5   19.7   17.1
Lignite             31.7    37.3    8.3    9.5
Natural gas         21.9    19.9    5.8    5.1
Oil                  9.6     6.8    2.5    1.7
Others               6.4     7.7    1.8    2.0
Total domestic     144.3   138.2   38.1   35.4
IMPORTS
Oil                199.3   178.7   52.7   45.8
Natural gas         16.6    44.4    4.4   11.4
Nuclear              3.9    14.4    1.0    3.7
Coal                 9.5    10.7    2.5    2.7
Others               4.9     3.8    1.3    1.0
Total imports      234.2   252.0   61.9   64.6
TOTAL              378.5   390.2  100.0  100.0

Source: West German Coal Industry Federation

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1691 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

UK wins major part of Brussels steel award

BYLINE: BY GILES MERRITT IN BRUSSELS

SECTION: SECTION I; European News; Pg. 2

LENGTH: 192 words


AN EEC financial package worth almost $50bn has been awarded to Britain to help
fund schemes for aiding redundant steelworkers.  European Commission grants will
go towards programmes being launched to help 13,600 steelworkers formerly
employed at 23 UK plants.

The finance is not part of the controversial social programme, being proposed by
the Commission as an under-pinning for its steel industry restructuring demands.
Instead, it comes under the category of re-adaptation aids paid out of European
Coal and Steel Community funds.

Steelworkers in five Community countries are to benefit from the financial
package just announced by the Commission, but those in the UK receive the
biggest share.  Of the $65m total allocation, West Germany is to get $15m to
help 10,000 ex-steelworkers, while much smaller amounts are being granted to the
Netherlands, Belgium and Italy.

The money is aimed at contributing to four separate types of re-adaptation
scheme: resettlement allowances for those steelworkers moving to a job
elsewhere, allowances to supplement temporarily a lower-wage job, temporary
lay-offs and vocational training.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1692 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Cyprus protests to EEC over tariffs deal

BYLINE: BY JOHN WYLES IN BRUSSELS

SECTION: SECTION I; European News; Pg. 2

LENGTH: 176 words


THE CYPRIOT Government has sent a strong protet to Brussels about the EEC's
refusal to negotiate new tariff concessions.  It has also set a three-month
limit on the prolongation of present arrangements.

The three months' deadline, which would expire at the end of March, is an
attempt to put pressure on the Community to honour its promise to imporve access
to the EEC for Cypriot agricultural products.

The Ten had promised to negotiate a new deal by the end of last year, but the
move was blocked by French and Italian opposition.  As a result, the Community's
Council of Ministers extended existing trade arrangements for six months with
the implied undertaking that the Cypriots would be offered something this year.

The Nicosia Government is under growing internal pressure to get tough with the
Community, and it could, in theory, remove preferential tariffs on products when
Cyprus's three-months deadline expire.  In practice, this is unlikely because it
would spark off a trade conflict which Cyprus would be unlikely to win.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1693 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Indonesian development spending up by 35%

BYLINE: By Richard Cowper in Jakarta

SECTION: SECTION I; Overseas News; Pg. 3

LENGTH: 362 words


INDONESIA HAS unveiled what is likely to be regarded by the man in the street as
a fairly unpopular draft budget.  Economists, however, have praised it as a
brave attempt to limit personal consumption while maintaining the country's high
level of economic growth during a worldwide recession.

President Suharto's budget plan projects a 12 per cent increase in Government
revenue to $21.5bn from $19.2bn in 1981-82.  This increase, plus a 7 per cent
cut in current expenditure will be poured into the development budget, which was
increased by 35 per cent to $13.5bn from $10bn in 1981-82.

For the first time in four years, outlays on development will be greater than
current expenditure, which is forecast at $10.9bn in 1982-83, down from $7.7bn
in the current fiscal year.

This should enable the Government to maintain economic growth at the current
level of around 7 per cent at a time when the Indonesian economy is under
pressure from falling demand for commodity exports and stagnant oil prices.

To finance the development spending, President Suharto has decided to cut food
and fuel subsidies by 40 per cent and to impose a salary cut in real terms on 2m
civil servants.

He called on the nation to tighten its belt: "To delay development would only
prolong the sufferings of a difficult and demanding life . . . therefore let us
be willing to make sacrifices," he said.

Coming four months before an election the cuts were thought by some to be
courageous and by others, foolhardy.

The budget was undoubtedly a victory for the largely Western - trained
technocrats who head economic ministries.  Along with the World Bank and other
Western economists they had advised the President that the soaring subsidies on
domestic fuel were encouraging wasteful use of the country's most precious
natural resource.

The President made it clear that when the country was facing a projected balance
of payments deficit of $1bn in 1981-82 and a slightly larger deficit in 1982-3,
it could not afford a fuel subsidy bill of over $3bn.  Savings in this area of
around $1.7bn would account for around half the total increase in the
development budget.

LANGUAGE: ENGLISH

GRAPHIC: Picture, President Suharto

                   Copyright 1982 The Financial Times Limited


                             1694 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Land reform troubles hungry Ethiopia

BYLINE: By James Buxton, recently in Addis Ababa

SECTION: SECTION I; Overseas News; Pg. 3

LENGTH: 694 words


THE GREAT justification of the Ethiopian revolution was the terrible
backwardness and proverty in which all but a small, mainly urban, minority of
its 31m people were living.  One of its first acts was a drastic reform of land
tenure to abolish landlords, regarded as the villains of the old regime.

Now, seven years after the revolution began, the rural population is better off
than before, while the urban population has become relatively poorer.  But the
country remains among the world's six poorest and its development prospects are
uncertain.

The bright spot is the vigorous attempt the Government is making at development
on a communal, self-help basis.  Less encouraging, however, is the shaky
performance of the enlarged state sector and Ethiopia's problems in trying to
attract the foreign aid in needs for large scale development.

Ethiopia is poor because of its fissured, mountainous geography and the late
start it made on development.  The country was only colonised for six years by
Italy between 1936 and 1941.  Modern development for most parts of the country
was hardly possible before the 1950s.  Most of the population still lives more
than a day's journey from any kind of road.

Although land reform came in February 1975, the next few years were to
turbulent, with power struggles and wars, that little could be accomplished
until the autumn of 1978.  But already Ethiopia was facing a big problem which
still dogs it today.

The disappearance of the landlords meant that farmers no longer had to pay rent.
That reduced their need to produce a surplus for market, which was compounded by
the inadequate price which the new state marketing concerns were offering.  Many
farmers grow as much as before, but eat more of it themselves.

The marketing corporations now offer a slightly better, but still uniform,
price.  But the towns are still often short of food, the country has a net food
deficit, and the average Ethiopian lives below famine ration level, according to
the World Food Programme.

The Government has tried to make farmers produce more by giving them more advice
and better inputs, rather than change the system.  It is also trying to make the
peasants' associations, set up after land reform, become farming co-operatives.
Relatively few have done so, however, and the authorities are meeting resistance
in many areas.  The peasant, enjoying his land for the first time, does not want
to lose his independence again.

Government planners admit that Ethiopia needs more than self-help and cash
solutions.  It requires a large scale development programme to expand the
transport system, create new industries and large scale agriculture for export.

All this needs foreign exchange.  Ethiopia's main foreign exchange earner,
coffee, brought in only $280m (£145m) in 1980, equivalent to about a third of
imports.  Ethiopia receives relatively little foreign aid -- only the equivalent
of about $5 (£2.59) per head, compared with an average of $17 for all the least
developed countries.  The West disburses about $70m a yer to Ethiopia.

There has always been a limit to how much aid Ethiopia can absorb, while many
aid schemes lapsed during the revolution because of general lawlessness.  Yet
its investment plan for the next 10 years calls for the spending of $13.2bn, of
which $8.2bn will have to be met from aid.

Every potential aid donor will be impressed by the regime's commitment to
development, by the efficiency of certain parts of the Ethiopian state sector --
Ethiopian Airlines is one of the best-run airlines outside Europe and North
America -- and by the Government's financial prudence.  It runs a surplus on its
current budget, has a low debt service ratio (leaving aside its unmeasured but
vast commitment to the Soviet Union for arms) and adequate reserves.  It
displays none of the facklessness in financial management which is so common in
Africa.

But the aid donor will also notice a great shortage of skilled manpower and
ineffective use of much available talent, thanks to the nationalisation of
businesses and the fact that some technocrats are still in prison.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1695 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Pretoria to charge mercenaries

BYLINE: BY BERNARD SIMON IN JOHANNESBURG

SECTION: SECTION I; Overseas News; Pg. 3

LENGTH: 374 words


THE SOUTH AFRICAN authorities have unexpectedly reversed an earlier decision not
to prosecute 40 of the 45 mercenaries involved in a coup attempt on the Indian
Ocean island of Seychelles last November who hijacked an Indian airliner to
Durban.

The men are to face four charges under the Civil Aviation Offences Act, South
Africa's strict anti-hijacking law, the Attorney-General of Natal, Mr Cecil
Rees, said yesterday.  The law carries a minimum prison sentence of five years.

In the Seychelles yesterday, seven foreigners arrested for alleged involvement
in the abortive coup appeared in court.  The prosecution asked that the seven,
including a Briton and a South African woman, be held on the "serious charges"
of importing arms and ammunition.  The charges carry a maximum sentence of 20
years' imprisonment.  The seven were remanded in custody for two weeks.

The decision to prosecute the mercenaries in South Africa is understood to have
been taken at the highest Government level.  It appears to be a direct result of
angry criticism both in South Africa and abroad against the release of the men
days after their arrival in Durban on the Air India Boeing 707.

Pretoria's lenient treatment of the hijackers prompted widespread calls for the
suspension of South African Airways' foreign landing rights and fuelled
suspicions of official South African involvement in the coup attempt.

Government spokesmen at first shrugged off the critics.  In a memorable comment,
the Minister of Police, Mr Louis le Grange, said that the mercenaries "only shot
out some windows and ran around the bush." More recently however, Ministers and
senior policemen have hinted that the men might be brought to court.

Most of the men appeared in courts in Durban, Pretoria, Johannesburg and Cape
Town yesterday.  They will appear together in a Durban court on January 18 when
a date for their trial will be set.

Mr Rees said that hijacking charges would also be brought against the five
mercenaries, including the group's leader, Colonel Mike Hoare, who were released
on bail last month after a brief court appearance.  Colonal Hoare and his
colleagues were initially charged with kidnapping, which carries no minimum
sentence.

LANGUAGE: ENGLISH

GRAPHIC: Picture, Col Hoare

                   Copyright 1982 The Financial Times Limited


                             1696 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Tripoli oil pipeline repairs start

BYLINE: By Ihsan Hijazi in Beirut

SECTION: SECTION I; Overseas News; Pg. 3

LENGTH: 116 words


WORK is underway to repair the damaged pipeline carry-in Iraqi crude oil to the
Lebanese Mediterranean coast, but the Government is still uncertain about
whether Baghdad was ready to resume pumping.

Pumping was discontinued last Sunday after the pipeline, extending from the
Syrian border to the terminal in Tripoli, was damaged by an explosion,
apparently caused by a bomb.

Syrian troops of the Arab Deterrent Force may take charge of protecting the
pipeline against furture sabotage, Press reports said here.  Syria has an
interest in the continued export of Iraqi oil from the Mediterranean because
part of the crude is pumped from northern Iraq to the Syrian port of Banias.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1697 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

S. African economy slows down

BYLINE: BY BERNARD SIMON IN JOHANNESBURG

SECTION: SECTION I; Overseas News; Pg. 3

LENGTH: 257 words


BUSINESS activity in South Africa has slackened markedly in recent months,
Standard Bank, the country's second largest banking group, said in its latest
economic review published yesterday.

According to the bank's economists, "growth expectations have to be marked down
significantly. Further weaknesses than those already evident must be expected in
virtually all aspects of domestic activity, particularly since basically
restrictive economic policies are likely to be pursued during most of this
year."

The slowdown has already begun to ease South Africa's severe balance of payments
and labour strains, the bank said.  Import volumes appear to have fallen
"significantly," while skilled labour shortages are easing.

The bank predicts that consumer prices will rise by 13.5 per cent in 1982,
slightly below the estimated 14.5 per cent of last year.  Inflation is still
being fuelled by higher import costs as a result of the sharp decline of the
rand over the past year.

The prices of steel and fertiliser were raised within the first few days of the
year.  Hefty postal and telecommunications tariff increases, to be implemented
on April 1, were announced yesterday.

The increases drew charges from opposition politicans and industrialists today
that they would have an inflationary effect.

The Posts and Telecommunications Minister, Mr Hennie Smit, said the increases
would boost revenue by 19 per cent and were necessary to avert an operational
loss of some 70m rand ($73.5m) in the 1982-1983 financial year.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1698 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Zimbabwean railway workers appear in court

BYLINE: BY OUR SALISBURY CORRESPONDENT

SECTION: SECTION I; Overseas News; Pg. 3

LENGTH: 140 words


NEARLY 250 striking railmen appeared in Zimbabwean courts yesterday as the
Government of Mr Robert Mugabe tried to break a five-day-old strike which is
crippling goods and passenger services.

Most of the strikers, who appeared before magistrates in Salisbury, Bulawayo and
Gwelo, pleaded guilty to disrupting essential services and were detained
overnight

The men, who work as firemen on Zimbabwe's 80-strong fleet of steam locomotives,
had been arrested over the past two days under emergency power regulations. More
than 400 of the firemen are on strike over a pay dispute which the Government
says is due to be heard by an industrial tribunal next month.

The strike has led to an embargo by the National Railways of Zimbabwe (NRZ) on
all goods loading for its system, and the cancellation of most passenger
services.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1699 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Tension mounts in Assam

BYLINE: By K. K. Sharma in New Delhi

SECTION: SECTION I; Overseas News; Pg. 3

LENGTH: 278 words


TENSION MOUNTED in the oil-producing state of Assarm in north-east India
yesterday when nearly 400 people were arrested for defying a ban on meetings and
a number of shops and businesses remained closed.

The protest was organised by student leaders who have revived the agitation on
the "foreigners issue" which paralysed economic activity in Assam for nearly a
year from mid 1979.

There are fears that the movement will spread to Assam's oilfields and
refineries as well as its lucrative tea gardens.  This would seriously impair
the Indian economy which is just recovering from the drought and the Assam
disturbances of 1979.

Students in Assam want all foreigners -- mostly migrants from Bangladesh and the
Indian state of West Bengal -- expelled from the state on the grounds that the
local people are losing job opportunities and their cultural identity is
threatened.

The students started demonstrating about two months ago when talks with the
Government broke down.  They have threatened to escalte the agitation.

* The International Finance Corporation (IFC), the World Bank affiliate, has
offered aid for the Indian oil industry.  This is needed urgently now that the
World Bank's soft loan affiliate, the International Development Association, is
short of funds because of a cut in contributions by the U.S. and other donors.

The IFC's offer was made by Mr Hans Wuttke, its executive vice-president, at a
meeting with Mr P. C. Sethi, India's Petroleum Minister.  The offer was mainly
for exploration although no details were discussed.  The Indian Government is
expected to make formal applications for particular projects soon.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1700 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Court blow to fundamentalists

BYLINE: BY REGINALD DALE, U.S. EDITOR IN WASHINGTON

SECTION: SECTION I; American News; Pg. 4

LENGTH: 324 words


THE GROWING tide of Rightwing fundamentalism in the U.S. was stemmed, at least
temporarily, yesterday by a federal judge in Little Rock, Arkansas.

Judge William Overton ruled that the state's "creation science" law, pushed
through by religious fundamentalists last summer, violated the provision in the
U.S. Constitution banning religious teaching in schools in the public education
system.

The Arkansas law required science teachers to give "equal balance" to Darwinian
theories of evolution and the creationist view that life, and the earth, were
created as little as 6,000 years ago.  The fundamentalists have been seeking to
push through similar laws set state level throughout the nation.

If the Little Rock ruling is upheld on appeal, the creationists are thought
likely to change their tactics and concentrate on getting the teaching of their
theories approved by local school boards, rather than through state legislation.

After a nine-day court case last month, widely regarded here as an historic
confrontation between science and religion, Judge Overton ruled that creationism
was not a science, as its advocates had maintained, but merely the Book of
Genesis in disguise.

The trial drew frequent comparisons with the famous Scopes case of 1925, in
which a biology teacher was convicted under a Tennessee state law forbiding the
teaching of Darwin's theory of evolution.

The Arkansas law was pushed through by a junior state Senator with no more than
15 minutes' debate.  Governor Frank White signed it into law without even
reading it.

The fundamentalists at the trial suffered frequent ridicule at the hands of
lawyers for the American Civil Liberties Union, which challenged the law.  The
creationists' star theological witness was forced to admit to a belief that
unidentified flying objects were manifestations of Satan, and two others said it
could be a god idea to teach that the earth was flat.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1701 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Fed to alter money supply definitions

SECTION: SECTION I; American News; Pg. 4

LENGTH: 179 words


THE U.S. Federal Reserve Board has announced that it plans to streamline its
money supply definitions this month.  This had been foreshadowed by Mr Paul
Volcker, the Fed chairman and, has no direct monetary policy implications. It
should, however, make life easier for the financial markets.

Starting in two weeks, when money supply figures for the first statement week of
1982 will be announced, the Fed will report only M1.  This will replace three
current measures, known as M1-a, M1-b and M1-b shift-adjusted, which had to be
developed to cope with changes in bank account rules which have had a big impact
over the last 12 months.

The new M1 will be the same as the old M1-b, and will consist of currency in
circulation, bank current accounts and bank deposits against which cheques can
be written.

Broader money supply definitions such as M2 and M3 will remain unchanged.

M1 is the most widely watched of the many measures of the U.S. money supply.  It
is also the one on which the Fed relies most heavily to shape and conduct
monetary policy.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1702 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Japan sets deadline for Bandar Khomeini

BYLINE: By Charles Smith, Far East Editor, in Tokyo

SECTION: SECTION I; American News; World Trade News; Pg. 4

LENGTH: 276 words


Japan's Mitsui group has set January 8 as the deadline for Iran to declare its
intention to shoulder the additional costs of the ill-starred Bandar Khomeini
petrochemical project.

If Iran fails to reply, or replies unsatisfactorily, Mitsui is expected to go
ahead with plans for a complete withdrawal from the project.

The Mitsui group has been demanding since last summer that the basic contract
under which Japan and Iran shoulder equal portions of the cost be re-written in
view of delays and damage caused by the Iran-Iraq war.

The Bandar Khomeini project, conceived as 50-50 joint venture between Iran and
Japan, was originally expected to cost around $500m (£263m) and was to have used
associated gas from the oilfields of southern Iran as the feedstock for a
300,000 tons per year ethylene cracker.

The cost of the project had been revised upwards to $3bn on the eve of the
Iran-Iraq war but it is now impossible to estimate following extensive damage to
the 85 per cent-complete complex by Iraqi bombing.  This is the main reason why
Mitsui has been refusing, since last April, to spend any more money on Bandar
Khomeini.

Talks held in November between Mitsui group executives and a delegation headed
by the chairman of the Iran National Petrochemical Company failed to produce a
formula for a resumption of work.

But Iran offered to shoulder additional costs of the project in return for an
estimate by the Japanese side of the probable amounts involved.

Mitsui says it cannot provide any such estimate while the war continues and is,
therefore, demanding an unconditional promise by Iran to pay all future costs.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1703 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Joint venture for Chiyoda and Badger

SECTION: SECTION I; World Trade News; Pg. 4

LENGTH: 79 words


Badger of the U.S. have received a letter of intent from New Zealand Refining on
the award of a Y200bn (£473m) refinery contract, writes Our Far East Editor in
Tokyo.

The contract would be the first to be carried out jointly by Chiyoda and Badger.
However, Chiyoda has experience of working with international partners in other
markets.  Last year it was awarded a Saudi Arabian refinery contract in
association with Parsons of the U.S. and Technip of France.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1704 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Rise expected in U.S. coal exports

BYLINE: BY MARTIN DICKSON, ENERGY CORRESPONDENT

SECTION: SECTION I; World Trade News; Pg. 4

LENGTH: 327 words

HIGHLIGHT: INCREASE OF 10% FORECAST FOR THIS YEAR


U.S. COAL exports are expected to rise by 10 per cent this year compared with
1981, according to a forecast from the Washington-based National Coal
Association, the industry's umbrella body.

The estimate, which is broadly in line with private U.S. analysts' expectations,
comes despite a slackening in the growth of European coal demand because of the
recession.

The NCA estimates that 1982 exports will total 94.5m tonnes, of which 16.2m
tonnes will go to Canada and 78.3m tonnes to other countries.  This compares
with estimated exports of 85.5m tonnes in 1981, of which 13.5m tonnes went to
Canada and 72m tonnes elsewhere.

Metallurgical coal, used by the steel industry, will account for 52.2m tonnes of
the total, with 6.3m tonnes of that going to Canada.  This compares with exports
of 48.6m tonnes in 1981.

Steam coal, used to generate heat in power stations and industrial boilers, will
make up 42.3m tonnes of the total, compared to 36.9m tonnes last year.  Some 10m
tonnes of this will go to Canada.

International trade in steam coal is poised for a major expansion over the next
20 years as industry switches from oil firing.  Growth is slower than was being
forecast a year ago, but U.S. steam coal exports (excluding Canada) have risen
from virtually nil in 1978 to 2.25m tonnes in 1979, 14.4m tonnes in 1980 and
nearly 28m tonnes last year.

The recent growth has been due in part to a substitution of U.S. coal by
European buyers for supplies from Poland, where political upheavals have cut
production.

The NCA estimates that U.S. domestic coal consumption in 1982 will reach a
record 695m tonnes, a rise of 4.6 per cent on last year.  The growth rate will
be slightly lower than in 1981 because of a slower rise in demand for
electricity and the general state of the U.S. economy.

U.S. coal production, depressed by a 72-day miners' strike last year, will rise
by 10 per cent to 797m tonnes in 1982, the NCA says.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1705 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Bleak years ahead, shipbuilders are told

BYLINE: BY ANDREW FISHER, SHIPPING CORRESPONDENT

SECTION: SECTION I; World Trade News; Pg. 4

LENGTH: 330 words


THE U.S. shipbuilding industry faces a few bleak years as more yards become idle
and thousands of skilled workers lose their jobs, Mr Edwin Hood, president of
the Shipbuilders' Council of America, said.

In a gloomy New Year message, he said the industry had already started to run
down.  "A turn-around before 1984-85, it then, is highly improbable."

The U.S. industry's merchant order book was rapidly dwindling, with contracts
for only seven new buildings of 1,000 gross tons or more placed in 1980 and
eight in 1981.  Over 90,000 workers are employed in U.S. yards.

"After the end of 1982, only eight vessels will remain to be delivered," he
added.  Latest figures from Lloyd's Register of Shipping show a total U.S. order
book of 1.4m gross tons at end-September, less than Japan, South Korea, Spain,
Poland or Brazil.

Subsidised U.S. shipowners could now build ships abroad and still obtain
substantial operating subsidies from the public treasury, he said.

The adverse effects of this on the industry could not be denied, he added.  Nor
would moves to expand the U.S. Navy come early enough to reverse the decline in
yard capacity.

"Only ship conversions and repairs -- now spotty -- hold the potential of
relatively stable near-term markets for U.S. shipyards."

He said that yards were pessimistic abour the immediate outlook, though optimism
that a "constructive national strategy" may soon be set in motion was fortified
by over $2bn of capital improvements in the last 10 years, with $500m more
planned.

A few weeks ago, the Avondale yard in Louisiana launched the President Lincoln,
the largest container ship to be built in the U.S.  This is part of a $270m
contract for three vessels with American President Lines.

Nearly half of the total cost of construction will be covered by Government
subsidies.  The vessels are intended for use between the U.S. West Coast and
Asia, with final delivery scheduled for between May and November.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1706 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Swaziland to build rail link

BYLINE: BY BERNARD SIMON IN JOHANNESBURG

SECTION: SECTION I; World Trade News; Pg. 4

LENGTH: 269 words


SWAZILAND is to increase its economic dependence on South Africa by building a
rail link that will run through its territory into the eastern Transvaal and to
the port of Richards Bay, north of Durban.

The 115 km line, from the South African town of Komatipoort to Mpaka in eastern
Swaziland, will complete a rail route from the Transvaal to the Natal coast 250
km shorter than the existing route through South Africa.

According to a senior official of Swaziland Railways, the line will cost
R50m-R60m (£27m-£32m) and will be completed in 1984.  Financing arrangements
have not been finalised, but the South African Government is understood to be
willing to contribute part of the cost.

The main beneficiaries of the line will be South African exporters of phosphoric
acid and phosphate rock produced at Phalaborwa in the north-east Transvaal, and
timber growers.  Coal from a mine to be built in the Kangwane tribal homeland
close to the Swazi border will also be shipped by rail via Mpaka.

According to Swaziland Railways, revenues from the line should eliminate the
railways' operating deficit and help it repay loans for construction of the
southern part of the Richards Bay route, completed several years ago.  "The
profitability of the route will depend on South African traffic," an official
said.

The line will also serve Swaziland's coal mining industry.A Shell Oil subsidiary
has shown interest in exploiting coal deposits near Mhlume in northeast
Swaziland.  The new line will cross the Mhlume coalfield, giving a mine the
choice of exporting through Richards Bay or Maputo.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1707 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Solvay to alter supply agreements

BYLINE: By Giles Merritt in Brussels

SECTION: SECTION I; World Trade News; Pg. 4

LENGTH: 166 words


SOLVAY, the Belgian chemicals concern and the world's top producer of soda ash,
has agreed to European Commission demands that it should alter its supply
agreements with EEC glass manufacturers.  ICI of the UK, the second largest
producer in Europe, is also to change its supply policies.

The Brussels Commission's pressure on the two major soda ash producers stems
from concern that their exclusive, long-term supply contracts with certain glass
manufacturers were in breach of the competition rules of the Treaty of Rome.

The Commission's action also reflects complaints from the glass industry that
the exclusive soda ash contracts tied manufacturers to a sole source of supply,
and prevented them from obtaining additional supplies elsewhere when those were
needed to boost output and fulfil orders.

Solvay has undertaken to abolish its system of exclusive contracts, and ICI has
agreed in principle to accommodate the Commission's view by changing its supply
contracts.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1708 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Beira-Umtali oil pipeline ready

BYLINE: BY OUR SALISBURY CORRESPONDENT

SECTION: SECTION I; World Trade News; Pg. 4

LENGTH: 178 words


THE OIL pipeline from Mozambique's Indian Ocean port of Beira to the eastern
Zimbabwe border city of Umtali is ready for operation after lying dormant for 15
years, according to businessmen.

The say the 180-mile pipeline, crucial to Zimbabwe's plans to end dependence on
South African roads and railways for fuel supplies, is awaiting a tripartite
load tariff agreement between its owners, Lonrho, and the Salisbury and Maputo
Government.

Mozambique had initially asked for charges to Zimbabwe equal to the cost of
railing fuel from Beira, a levy Salisbury was unwilling to meet.

The completion of the pipeline's long-awaited rehabilitation after years of
enforced inactivity following the imposition of trade sanctions against the
former Rhodesia in 1965 was recently delayed by guerrilla sabotage by the
Mozambique National Resistance (MNR) which Mozambique and Zimbabwe allege is
organised and financed by South Africa.

Zimbabwe gets all of its diesel fuel, 30 per cent of its petrol, and half of its
aviation fuel from or through South Africa.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1709 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Bangladesh: the battle begins to increase exports

BYLINE: BY KEVIN RAFFERTY, RECENTLY IN DACCA

SECTION: SECTION I; World Trade News; Pg. 4

LENGTH: 619 words


BANGLADESH has embarked on one of the biggest tasks of its ten-year existence
with a proposal to increase exports by $1bn (£526m) a year within the next five
years.

"Otherwise," said Mr Jamaluddin Ahmed, deputy Prime Minister and Industries
Minister, "we cannot survive."

He proposes to boost exports through a mixture of large projects using natural
resources and smaller schemes which will utilise Bangladesh's major resource --
its abundant labour force, which is probably the cheapest in the world.

The scale of his proposal must be seen in the context of the country's overall
trade, which is scarcely $3.5bn a year.  The deficit has widened from $380m in
1972-73 to an originally projected $2bn for this year before the clampdown on
all but essential imports.

During the eight years, exports have risen from $347m to between the $750m to
$800m expected this year.

In spite of valiant efforts at diversification, jute still accounts for 65 per
cent of export earnings, but it has been hit by world recession and by
Bangladesh's production problems.

Jute crops have fluctuated and jute goods have been disturbed by industrial
unrest and by poor management.

Expansion of non-traditional items has been hit by recession and by marketing
problems.  Exports of leather goods reached a peak of $76m in the 1979 fiscal
year.  Fish and shrimp exports have had to fight an uphill battle through stiff
health regulations in developed countries and are expected to reach $50m for
1981.

Because of the dominant role of the struggling jute industry, exports have
fallen further behind imports, with the gap being bridged by aid flows, making
Mr Jamaluddin's export target seem elusive.  But there are some hopeful signs.

The first is the plan to use the countr's 9 trillion (million million) cu ft of
natural gas reserves to support big industrial projects.

A 500,000-ton fertilser plant is just coming on stream and two others are to be
built, one with help from the Asian Development Bank and the other in the
private sector under a consortium including Norsk Hydro.  The fertiliser plants
will cost about $450m each.

In addition, a $200m sponge iron plant using Bangaldesh natural gas and iron ore
pellets from India and a $250m methanol plant will also expand the range of
Bangladesh exports.  Mr Jamaluddin says that other projects could include a pulp
and paper plant using jute cuttings.

The big projects alone could provide half the extra targeted exports.  By the
middle of the decade, Bangladesh should be producing 1m tons of urea for export,
which at today's prices, would fetch $250m.  Mr Jamaluddin estimated annual
export earnings from the sponge iron plant at $150m and from the methanol plant
at $100m.

Hope is also being pinned on the free trade zone which is being set up near
Chittagong, Bangladesh's main port.  The zone was first outlined in 1976.

Mr Jamaluddin is optimistic that things are on the move: "100 plots of land are
now ready for immediate allotment.  The infrastructure is laid on, and there are
two kinds of standard factories plus a central warehouse."

In February, Bangladesh and the UN Industrial Development Organisation will be
hosts in Bangladesh to more than 200 companies and will explain to them the
advantages of setting up in the country.

Mr Jamaluddin's optimism is tempered by the views of economists who are
concerned at the low literacy rate -- 22 per cent -- and highly politicised
labour force.

The lack of natural resources, apart from gas, is a great handicap.  It is
typified by the fact that to produce stones for road foundations, workers have
to bake bricks and then chop them up with hand-held hammers.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1710 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

IMF loan conditions: The case for income redistribution

BYLINE: Evan Luard

SECTION: SECTION I; World Trade News; Pg. 4

LENGTH: 1156 words

HIGHLIGHT: Evan Luard argues that the International Monetary Fund should apply
altered criteria for credits to Third World countries


ALMOST since the International Montary Fund (IMF) began, there has been argument
about "conditionality" -- the terms the Fund should demand in return for
providing credit.

Traditionally the IMF acted on the basis that, if a country had a balance of
payments problem, it must be its own fault.  The government must have allowed
the economy to overheat, inflation to develop and the price level to get out of
line, so that exports became uncompetitive and imports were sucked in.

Thus the terms which the IMF demanded in return for a credit related to domestic
fiscal and monetary policy.  The Fund insisted that credit was squeezed, public
spending cut, budgets balanced, consumer subsidies abolished and, if necessary,
the currency devalued.

Many people in developing countries, for example the "structuralist" school of
economists in Latin-America, complained from the beginning that these
prescriptions, affecting the financial sector rather than the real economy yet
involving a heavy sacrifice of growth, were inappropriate to the problems facing
many developing countries.

In the past few years these complaints have become more widespread and received
some support in the West.  In the circumstances which poor countries now face,
the traditional analysis looks increasingly inadequate.

In most cases, the balance of payments difficulties of developing countries
today do not stem from domestic causes at all.  They arise from factors in the
international economy which are totally outside their control.  They have large
deficits mainly because of factors like the increase in oil prices, world
inflation, world recession, low commodity prices, and high interest rates.
Therefore however orthodox and austere their own financial policies may be they
can still end up with huge deficits which cannot be easily or quickly overcome.

The IMF has adjusted its policies slightly in response to this situation.  In
1979-80 the fund agreed it would lend more to countries in difficulties, over
longer periods, and above all on rather less rigorous conditions.  This new
policy has been reflected in recent credits such as those granted to Zaire,
Jamaica and India in the last few months.

The Fund still calls for measures of "adjustment" as the price for a loan, but
these are now adjustments of a more long-term character, including the
development of alternative energy sources, new exports and import-saving
industries.

Unfortunately, however, no sooner was the new IMF policy adopted than the Reagan
Administration was elected in the U.S.  The Reagan Administration immediately
began to question the policy.  It demanded a return to the previous conditions
for loans (the recent credit to India almost foundered on the rock of these
objections).

So the old argument about conditionality has surfaced again.

No sensible person believes that the IMF, any more than any other financial
institution, is likely to lend without demanding any conditions.  Not many
people believe it should.  The question is what kind of conditions is it
relevant and sensible for the Fund to demand in current circumstances?

It is arguable that in the conditions facing many poor countries the old kind of
conditionality may produce the opposite effect to that intended.

Policies of over-strict credit restraint, together with old-fashioned
"liberalisation," of the kind recently adopted in Chile, Argentina, and Peru,
may lead to an almost automatic deterioration in the balance of payments.  Very
high interest rates, which are an essential element of the policy, will lead, as
they have done in the UK and the U.S., to increased costs and continuing high
inflation.  They will cause real hardship both to local industry, and above all
to the local agricultural population who are usually dependent on credit to
maintain their livelihood.

Liberalisation leads to a rapid sucking-in of imports, especially of luxury
Western-style consumer goods for the wealthy classes -- the wealthier classes
are almost alone in being able to take advantage of the new policies.  This
flood of imports from abroad, together with the high cost of credit, causes
severe difficulties for local industry, so that bankruptcy and unemployment
increase.

The effect of the policies may, therefore, be a prolonged depression of the
domestic economy and much increased unemployment, without any improvement, and
sometimes with a serious deterioration, in the balance of payments.  This is
exactly what has happened in countries including Chile, Argentina and Peru.

This suggests that the kinds of policy the IMF used to demand, and which are now
being called for again by the U.S. are unlikely to bring lasting improvements by
themselves alone.

Policies against inflation are bound to be demanded.  But equally revelant, and
particularly relevant when an anti-inflationary policy is being pursued, is
another condition, which the Fund has been too reluctant to call for is a demand
for the redistribution of income in favour of the less wealthy classes.

This would have two effects.  First: It would reduce the propensity to import,
especially to import expensive consumer goods.  Consumer demand would be
transferred towards the purchase of food, so helping to raise producer prices
and stimulate food production, and towards the purchase of simpler and cheaper
consumer goods which local industry can provide and which therefore do not
create a strain on the balance of payment.

Second: At the same time it would help stimulate investment in simpler
industries related to domestic requirements and likely to come from domestic
sources, instead of stimulating external investment concerned mainly with the
needs of external economies and requiring heavy repayment costs.

This would mean that the balance of payments imbalance would be more rapidly
overcome.  In addition the benefits of competition are more likely to be tested
when markets are expanding than in severely depressed conditions which often
lead to the destruction of much local industry.

Certainly there should be far more public discussion of the policies pursued by
the IMF on such questions -- and not only within the Fund itself.  These
policies can be a matter of profound importance to many developing countries, an
importance which will increase as the IMF's role continues to grow.

Even Luard is a former Labour MP for Oxford now working for Oxfam.
  Major IMF Trust Fund loan
    disbursements between
  July 1976 and March 1981
                    Total
                (millions of
Member Country     SDRs *)
Bangladesh           122
China                310
Egypt                184
India                529
Morocco              110
Pakistan             230
Philippines          151
Sri Lanka             96
Thailand             131
Zaire                110




* The SDR (Special Drawing Right) is the IMF's international reserve asset based
on a basket of currencies; one SDR is currently worth $1.17.

Source: IMF annual report 1981

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1711 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

How a coal trader became the fastest-growing UK company

BYLINE: By Carla Rapoport

SECTION: SECTION I; Companies and Markets; UK Company News; Pg. 5

LENGTH: 1779 words


SOMETHING IS happening in Sheffield.  In the heart of one of Britain's
recession-hit waste-lands, a small company has been adding on sales and profits
with the speed of the wind.

Over the coming year, the small company will have all but disappeared and in its
place will be an international coal trader, producer and distributor with sales
of £125m a year and a substantial bank of coal reserves around the world.

Britain's newest entrant to the international energy sector is Burnett and
Hallamshire, for some time the fastest-growing company in the country.  The
beginnings of the group's dizzying growth rate coincides with the promotion of
Mr George Helsby to finance director in 1974.  A short, energetic man who shuns
vegetables, Mr Helsby helped B & H kick through the crusty layers of more than
five decades of family-style management.

The results are remarkable.  Since Mr Helsby was appointed managing director in
1976, the company has increased turnover five times.  Its pre-tax profits have
recorded a seven-fold increase in the same period.  Sales last year should have
increased by about 25 per cent and profits should have nearly doubled.  Most of
this growth has come through acquisition, much of it involving share swaps
rather than cash.  But earnings per share have yet to suffer (see chart).
Return on capital employed has ranged between 25 and 32 per cent in the last
five years, but the company has not been relying on its bankers, it took out its
first major loan only a few months ago.

"Christmas?  Cancel Christmas, I don't have time for it," said Mr Helsby, as he
hopped into his powder-blue Rolls-Royce.  He's a joker, but there's a hint of
steel behind the smile.  Mr Helsby is a clever man who has pieced together his
coal empire with careful precision.  In the past year alone, the group has
allocated nearly £20m in cash and another £40m in equity for a string of
acquisitions -- Mr Helsby can reel off the details of each purchase without
missing a beat.

Family company

But can the man who transformed the sleepy family company with 250 employees
into an international energy business with a staff of 4,500 also keep the larger
company on course?  Can an open-cast miner based in Sheffield handle a huge
deep-mining operation in South Africa?

Part of the answer to those questions lie in Mr Helsby's track record to date.
Now 40, Mr Helsby arrived at B and H's small headquarters in Sheffield eight
years ago.  A Lancashire native, he had trained as an accountant and had
previous experience with Staveley Industries and Union Carbide.

At that point the company's liabilities were greater than its assets.  First, he
said, the books were straightened out, and then the main business attacked.
Founded by two brothers in 1921, B and H had long been delivering coal
door-to-door in the North.  But by the early 1970s the group was concentrating
on three areas: oil storage and distribution; civil engineering and building;
and open-cast mining.

"After formal examination of our assets and activities, it was decided that we
were good at digging holes in the ground," said Mr Helsby.  Construction
activities were consolidated and B and H's subsidiary, Northern Strip Mining,
began expanding the group's open-cast coal operations.

NSM developed a "nose" for sniffing out the small pockets of coal reserves which
had been left behind by the National Coal Board as too small to exploit when the
industry was nationalised.  Successful in obtaining licences for these pockets,
B and H swiftly became the largest contractor to the NCB for open-cast mining in
the UK.

B & H continues to hold that title, supplying some 2m tonnes or about 13 per
cent of the output of the NCB Opencast Executive.  Considering the highly
sensitive nature of coal mining in Britain, B & H is unlikely to increase its
share of this market much further.  However, its important position in this
lucrative market is attributed to the group's highly rpofessional mining
operation.

Good record

"There's no doubt others are miffed that B & H maintains such a good share of
this business," said Mr Malcolm Brown, a security analyst at James Capel.  "But
B & H has a very good record of delivering coal and keeps up a high standard in
mining technology."

Open-cast mining, unlike the underground business, is surprisingly
profitable.According to NCB figures, open-cast operations in the UK showed
average profits of £8.43 a tonne while underground activities recorded a £1.27
loss a tonne and have not produced profitable figures for the past 10 years.

B & H also found that its industrial property development activities sometimes
led it to coal.  "We were stabilising some land for development in the Midlands
and it just so happened that we had to extract 1m tonnes of coal to do the job
porperly, said Mr Helsby.  The group's various activities often overlap -- for
example, one unit has a contract to dump coal dust and sludge some 10 miles out
to sea.  Another unit further south has a contract for cleaning up the shoreline
and often can extract minerals useful to another B & H subsidiary.

In 1979, the group bought Mincorp, an unquoted coal mining group, which
broadened the mining and construction activities of the group.

"Around that time, we realised that our growth in this country was limited,"
said Mr Helsby, as coal remained regulated and construction activity was slowing
down.  Mincorp also contained a small stake in Rand London, a South African
deep-mining group with a London and Johannesburg listing, as well as a few other
overseas interests.  Mr Helsby's appetite was whetted.

The end-result has been a rapid-fire acquisition strategy which had taken B & H
into the Philippines.  Colombia, Chile and both the west and east coast of the
U.S.  In many cases, the deal was clinched with a deferred payment scheme in
which the vendor received future profits of his group provided they reached a
certain level.  B & H also successfully used its shares in several deals.

The most ambitious manoeuvre to date has been last year's acquisition of 51 per
cent of Rand London through two former shell companies, one registered in the
Netherlands, called Anglo-International Mining, and another registered in London
called Brint Investments, previously known as Hall Brothers Steamship Company.

The boards, as well as the share registers, of Brint, Rand London and Anglo
contain some of the same names.  Mr Alan Ferguson, who appears on all three,
owns about 25 per cent of Anglo and more than 50 per cent of Brint.  Mr Jeremy
Pinckney, one of the founders of Rand about five years ago, is also on all three
boards.

Sometime before the deal, B & H had sold its original stake in Rand -- "because
we weren't ready then," said Mr Helsby.  The stage was reset as follows:

Mr Ferguson, a short-lived director of B & H who was a shareholder in Mincorp,
became a prime investor in Anglo, building up the largest stake of some 25 per
cent of the shares.  Last January, Anglo acquired 22.3 per cent of Rand.

In the same month, Brint bought 28.7 per cent of Rand in a primarily paper deal
with nearly 60 per cent of the shares coming from Temple Investment, Mr
Ferguson's Guernsey-based investment company.  In April, B & H bought 23.2 per
cent of Brint and Mr Helsby joined the Brint board.

B & H made its move in October, offering its share for the entire share capital
of Anglo, on the condition that Anglo should first pick up Brint's stake in Rand
and thus hold 51 per cent of Rand.  All these deals have since been approved.
The transaction, which valued Anglo at £29m, turned Mr Ferguson's stake in the
unlisted Anglo into more than £5m worth of B & H's highly marketable shares; his
50 per cent stake in Brint providing another £5m worth of B & H shares.

Mr Helsby states that Mr Ferguson has "gone his own way" since leaving the B & H
board in early 1980 and has no say in the running of the company.

Mr Helsby's eyes fairly light up when Rand is mentioned.  In addition to some
640m tonnes of coal reserves, the group deep-mines high quality coking coal and
anthracite for the domestic South African market and for export.  The group
expects to win higher export allocations this year and increased production
expected in the next few years should fuel this growth.  The group also has
andulusite deposit and some gold and diamond interests.

Mr Helsby claimed he was looking forward to total group coal production of 6m
tonnes within three years and perhaps 8m tonnes in five years.  His recent UK
acquisition, Rexco, brings coal-refining expertise to the group, which he said
might be applied to the low-quality coal expected from the Philippines project.

Anglo and Rand had already begun working on a bulk handling facilities in Ghent
which when completed next year will be able to load 1,000 tonnes an hour from
medium-sized bulk cargo vessels.

"Small potatoes, really," said Mr Helsby when describing these international
link-ups.  "The majors are so much bigger and have access to much more resources
than us." But in addition to nearly 1 bn tonnes of coal reserves, B & H will
have an integrated coal business that mines it, buys it, moves it and sells it
under one name.  Such a tempting morsel might catch the eye of an oil major in
the future.  "If we get the right offer, then it might happen.  I haven't had
one approach yet,"

Meanwhile, coal is only part of the B & H rocket.  The company claims to be the
largest distributor of middle distillates in the UK, and works under contract
with Total, Phillips and Gulf.  It also retails petrol at franchised petrol
stations under the brand name of UK in Lincolnshire.  On the property side, Mr
Helsby discovered California a few years ago and has sunk several million
dollars into a few Los Angeles deals in partnership with a local developer.

The pace at the small Victorian headquarters in the centre of Sheffield of B & H
is understandably frantic.  Mr Helsby claims to need little sleep and is known
to greet his staff with the question: "Have we bought anything this morning?"

As to his own stake in the company, he sold nearly 16,000 shares last year in
readiness for a new share option scheme.  "It just so happens," he said
cheerfully, that the middle-market price for the scheme was determined in the
week after Black Monday.  As a result of this happy timing, some 40 executives
are now eligible for share purchases during the life of the scheme at a price of
757p.  B & H shares now stand at 920p.  It seems only fair that the architect of
this company should share in its wealth.

LANGUAGE: ENGLISH

GRAPHIC: Graph, BURNETT & HALLAMSHIRE, Chris Walker

                   Copyright 1982 The Financial Times Limited


                             1712 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Navy sale could put 17 ships on scrap heap

BYLINE: BY OUR DEFENCE CORRESPONDENT

SECTION: SECTION I; UK News; Pg. 6

LENGTH: 465 words


TWENTY warships - destroyers and Frigates - are planned for disposal by the
Royal Navy within the next two years.  Plans to recude Britain's naval force
were announced last summer, but so far buyers have been found for only three of
the unwanted ships.  If further buyers cannot be found soon, up to 17 vessels
may be sold as scrap.

Details of the sales plan came as the Ministry of Defence announced financial
inducements to reduce the Navy's personnel complement by 500 officers and senior
ratings in the "first phase" of a redundancy programme designed to cut the
"senior service's" strength by up to 10,000 jobs by 1986.

The Chilean Navy is to buy HMS Norfolk, a County class frigate, while two
Leander class frigates, Dido and Bacchante, are being sold to New Zealand.

The scrapyard also probably awaits the amphibious assault ship Intrepid, which
is due for disposal this year, while its sister ship Fearless is destined to go
out of service in 1984.

The Royal Navy's standing instructions that it must sell off, mothball, or
otherwise dispose of key ships in its fleet was given extra emphasis in last
June's defence review.

Mr John Nott, Defence Secretary, said then that the Navy's force of frigates and
destroyers would be reduced from an existing 59 to 50 by 1984-5.

However, these figures gave only a partial picture of the intended reduction in
fleet size.  In 1980 alone, one helicopter cruiser and seven frigates (as well
as two inshore minesweepers and a fast attack craft) were taken out of service.

According to information recently given to Parliament, 24 ships will be
withdrawn between now and 1983.

One anti-submarine warfare commando carrier, a County class destroyer and three
frigates were withdrawn in 1981.  So, too, were a coastal minestweeper and three
fast target boats.

In the coming year, Intrepid will go, as will one destroyer, three frigates, two
coastal minesweeper, a coastal patrol craft and Porpoise, the only submarine of
its class in the Navy.

Also due for disposal next year is HMS Endurance, 3,600 tons, Britain's only
ship adapted for work in the Antarctic.

In 1983, projected withdrawals from service include the carrier Hermes, one
frigate, a coastal minesweeper, a coastal patrol craft and HMS Londonderry, the
Navy's trial ship.

Most controversial of all is probably the Government's decision to sell one of
the Navy's three new aircraft carriers.  While no firm deal has apparently yet
been agreed, HMS Invincible is likely to be sold to Australia, leaving the Royal
Navy in late 1983.

The Navy's redundancy plans, announced in June, as part of the efforts to cut
defence costs, are to be voluntary at first, with the prospect of compulsory
retirement if annual volunteer targets are not met.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1713 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Rise in money supply under 1%

BYLINE: By David Marsh

SECTION: SECTION I; UK News; Pg. 6

LENGTH: 316 words


THE GOVERNMENT's monetary policies were given a minor boost with the
announcement yesterday that sterling M3, the broad measure of the money supply,
last month grew by only 0.25 per cent, the smallest rise for more than a year.

Prospects for interest rate cuts, however, remain clouded.  U.S. interest rates
rose again yesterday following publication on Monday night of worse than
expected American money supply figures, which now have a far bigger impact on
London financial markets than the UK statistics.

Apart from the influence of dollar interest rates, two other factors are
dampening the outlook for an easing of UK credit costs.

Private sector borrowing from the banks, although well down from the record
level of November, still appeared to be growing last month at an uncomfortably
high rate.

Additionally, heavy flows of funds to the Exchequer, caused not only by the
start of the traditional tax gathering season but also by back-payments of tax
delayed by the civil servants' strike, are putting strains on short term
liquidity in the London money markets.

The rise of 0.25 per cent in sterling M3 last month - seasonally adjusted, for
the three week banking month to December 9 - was given yesterday as a
provisional figure by the Bank of England.  The final figure will be published
next week.

Along with the 0.5 per cent increase in November, last month's rise marked only
the second monthly gain of less than 1 per cent during the whole of 1981.

The small increase was due mainly to large cash flows to the Treasury, which
heavily reduced the need for government borrowing.  The Bank said yesterday that
a further £1bn of delayed taxes were paid to the Exchequer during the banking
month, although £3.5bn still remained outstanding at mid-December.

High credit demand from the private sector, however, continued to be an
expansionary influence.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1714 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Jobs loss warning to miners

BYLINE: BY JOHN LLOYD, LABOUR CORRESPONDENT

SECTION: SECTION I; UK News; Pg. 6

LENGTH: 409 words


MINERS were yesterday threatened with unemployment if they voted for strike
action in the national ballot next week.

Sir Derek Ezra, chairman of the National Coal Board, said during a visit to
Swansea that a strike vote could force the NCB "to make further cuts in our
investment programme, damaging future job prospects."

He said this would be "disastrous" in a time of recession, when unemployment was
still rising, especially in areas like South Wales.

However, in the course of his speech, he did not repeat that the board's offer -
worth between 9 and 10.5 per cent with the inclusion of a service bonus - was
final.  The board is thought certain to agree to further meetings between the
two sides should the vote be in favour of strike action.

The NCB has continued to stress, however, that it cannot afford to improve the
offer, and will not increase prices to its customers to fund a higher
settlement.  This places the onus on the Government to relax the NCB's cash
limits.

Board officials agree with the analysis of the mineworkers' leaders that the
Chancellor of the Exchequer's mini budget last month has made a vote for strike
action much more likely.

The 240,000 mineworkers will vote next Thursday and Friday, and their leaders
are urging a much higher vote for strike action than the 55 per cent that is
constitutionally sufficient.

Sir Derek said strike action would imperil the progress made by the coal
industry in the past year.  Productivity and attendance had improved
substantially, allowing the NCB to hold price rises below inflation and to
increase exports, he said.

"The Coal Board's offer, worth on average the equivalent of 9.3 per cent on
basic rates and up to 10.5 per cent for men with long service in the industry,
bears comparison with any made to any group of industrial workers in the present
pay round.

"Furthermore, it comes only 10 months after the last increase, whereas other
industrial workers have waited a full year for their rises.  And it is the
miners' third increase in 20 months."

Philip Bassett writes: Miners' pay will overshadow the negotiations opening
tomorrow for 90,000 manual workers in the electricity supply industry.  Power
workers' union leaders are expected to have the current miners' offer in mind
when they table their expected claim for a substantial increase in pay, a
reduction in hours and an improvement in shift and staggered working allowances.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1715 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

BL Cars chief forecasts 14% increase in production this year

BYLINE: BY KENNETH GOODING, MOTOR INDUSTRY CORRESPONDENT, IN BIARRITZ

SECTION: SECTION I; UK News; Pg. 6

LENGTH: 406 words


OUTPUT of BL cars and the company's car-derived vans this year will go up by at
least 14 per cent from 394,000 in 1981 to between 450,000 and 500,000, according
to Mr Ray Horrocks, chairman of BL Cars.

The company last produced 500,000 cars in 1978.  In 1981 there was a 9 per cent
rise in production from 360,000.

Mr Horrocks maintained this performance reflected BL's huge capital investment
programme - running at £350m a year - and successful products such as the Metro
and Triumph Acclaim cars.

Car production at Longbridge, Birmingham, where the Metro and Mini are built,
rose from 123,000 in 1981 to 235,000 last year, and BL expects its other volume
car plant at Cowley, Oxford, to repeat that performance this year.  It forecasts
that output at Cowley would rise from around 100,000 vehicles to more-than
150,000 this year.

Cowley produces the Triumph Acclaim and by the last quarter of the current
financial year will also be building up output of a new model, code-named the
LM10.  BL says the medium-size car, which is part of a range, is even more
important to its future than the Metro.

Mr Horrocks, speaking in Biarritz at the preview of a BL car shortly to be
launched, recalled that BL was the only UK-based carmaker to have increased both
its market share and unit sales in 1981 and "the facts and figures show BL has
started to turn the corner."

Productivity at both the Long-bridge and Cowley plants had risen by a third in
the past year, and was now in line with the best in Europe, he claimed.  Quality
of the cars had also improved to the extent that Honda, BL's partner in the
Acclaim project, admitted that quality of the British-built cars was better than
that for similar vehicles coming off production lines in Japan.

Mr Horrocks said car production in 1982 depended on whether the total UK market
reached the 1.5m sales currently predicted and on whether sterling continued to
weaken against continental European currencies.  "If the pound goes down slowly,
we will be nearer 450,000 than 500,000," he said.

BL hopes for a UK market share of about 21 per cent this year, up from 19.2 per
cent, but its dealers believe 23.8 per cent is an achievable target.  With the
benefit of full-year's sales of the Metro and the introduction of the Acclaim to
other European markets this year, BL expects sales in mainland Europe to reach
more than 90,000, compared with 84,000 in 1981.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1716 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Alliance hopes to heal rift

BYLINE: By Peter Riddell, Political Editor

SECTION: SECTION I; UK News; Pg. 6

LENGTH: 217 words


THE SOCIAL Democratic Party and the Liberals hope to resume negotiations later
this week over who should represent their alliance in parliamentary elections
following the suspension of such talks last weekend.  However, some key
difficulties remain to be resolved locally.

Mr David Steel, Liberal leader, and Mr Bill Rodgers, one of the SDP's collective
leadership, yesterday met over lunch to defuse an increasingly embarrassing
dispute which was being eagerly taken up by Labour and Conservative MPs to
attack the alliance.

Mr Steel and Mr Rodgers agreed that new procedures should be established to
prevent future flare-ups over the distribution of election campaigns between
local negotiators.  At Mr Rodgers' suggestion, two "firemen" have been appointed
to keep in touch with detailed negotiations and, if necessary, to settle local
problems.  They will be Mr David Penhaligon, for the Liberals, and Mr John
Horam, for the SDP.

After the lunch, Mr Rodgers said he believed that "the problems can be solved
though it will not be plain sailing." He stressed the SDP's commitment to the
alliance.

The separate negotiating teams of each party will meet today to discuss
yesterday's concordat before a joint meeting tomorrow which is expected formally
to restart negotiations.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1717 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Police chief denies switch to politics

SECTION: SECTION I; UK News; Pg. 6

LENGTH: 95 words


MR JOHN Alderson, a pioneer in the controversial field of community policing,
has resigned as Chief Constable of Devon and Cornwall.

Despite sympathy for the Liberal Party, he denied speculation that he was about
to enter politics.

He said he would take up a fellowship, at Corpus Christi College and the
Institue of Criminology at Cambridge University, in April.

Last year Mr Alderson refused to remove demonstrators who had occupied a
potential nuclear power site in Cornwall.

He is strongly opposed to police being armed with anti-riot weapons.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1718 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Dearer Datsuns

SECTION: SECTION I; UK News; Pg. 6

LENGTH: 45 words


DATSUN UK is to raise the prices of three of its most popular models by an
average of 2 per cent on January 20.

The increases will mean that prices of the Cherry, Sunny and Bluebird ranges
will have risen by between 10 and 11 per cent over the past 12 months.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1719 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Davy Corp

SECTION: SECTION I; UK News; Pg. 6

LENGTH: 28 words


THE full name of the Davy Corporation subsidiary named in our December 1 feature
on UK industry's labour shake-out as British Testing is Lloyds British Testing.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1720 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Reserves fall $4bn over 12 months

BYLINE: BY DAVID MARSH

SECTION: SECTION I; UK News; Pg. 6

LENGTH: 212 words


BRITAIN'S gold and foreign currency reserves fell last month by $116m to finish
1981 at $23.35bn, making a fall of more than $4bn during the year according to
Treasury figures published yesterday.  The drop over the last 12 months is
entirely accounted for by a reduction in Britain's foreign debts.

The decline in December - the ninth fall out of the last 10 months - seems to
have reflected some small net sales of currencies by the Bank of England to
steady sterling during its erratic fluctuations last month.  It traded during
December in the range $1.86 to $1.96 against the dollar.

The underlying drop after making allowance for public sector foreign debt
transactions came to $96m.  This took the overall underlying fall since sterling
started to weaken in June to nearly $1.6bn.

This change does not simply reflect intervention as it is the product of a
series of transactions which the Bank makes for the Government and other
customers.

The reserves were also reduced last month by a normal end-year repayment of
$126m on long-term loans to the U.S. and Canadian Governments.

Other official debt operations added to the reserves as public sector borrowing
under the exchange cover scheme amounted to $121m against repayments of only
$15m.

LANGUAGE: ENGLISH

GRAPHIC: Graph, no caption

                   Copyright 1982 The Financial Times Limited


                             1721 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Giro decline surprises bankers

BYLINE: BY WILLIAM HALL, BANKING CORRESPONDENT

SECTION: SECTION I; UK News; Pg. 6

LENGTH: 195 words


THERE HAS been a sharp drop in the volume of business passing through the
clearing bank's giro credit system - used by customers to pay, among other
things, utility bills - since charges were introduced last summer.  The extent
of the drop in traffic has surprised many bankers.

In November, the volume of inter-bank credit clearings dropped by 16 per cent to
15.4m items, according to confidential figures compiled by the Committee of
London Clearing Bankers.  When some banks introduced 30p an item charges for
inpayments by non-customers, bankers expected a temporary fall in traffic.

In June, the volume of credit clearing between banks fell by 5 per cent, and in
July it was down 10 per cent.  However, the decline has accelerated.  In August
and September, traffic fell by between 8 per cent and 9 per cent, and in October
there was a 14 per cent fall.

Until recently customers could go into a branch of any clearing bank and pay
their bills free through the banks' giro credit system, irrespective of whether
they had an account with that bank.  The volume of business has doubled since
1970, and now amounts to more than 200m items a year.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1722 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Howe urged to exceed public borrowing target

BYLINE: BY DAVID MARSH

SECTION: SECTION I; UK News; Pg. 6

LENGTH: 826 words


SIR GEOFFREY Howe, Chancellor of the Exchquer, is being advised by brokers in
the city of London who handle the bulk of Government debt sales to override his
public borrowing target for the next financial year and reflate the economy
through tax cuts.

Out of 10 leading London brokers in government stocks questioned by the
Financial Times, only three - L. Messel, de Zoete and Bevan and Pember and Boyle
- strongly urge the Treasury to stick firmly to its plan to restrict public
borrowing to £9bn in the 1982/83 financial year.

Most of the other brokers recommend a rise in borrowing through tax cuts in the
next Budget, to speed up economic recovery.

Significantly, economists at many of the broking firms doubt whether a rise in
borrowing of about £2bn above the target would lead to undue upward pressure on
interest rates.

This contradicts a central feature of the Government strategy.  Claiming that
official borrowing must be kept down to allow room for private business to
expand, the Treasury maintains that every £1bn of extra public borrowing would
lead to about an extra 1 percentage point on interest rates.

In particular, many of the brokers argue that the Government's borrowing targets
should take greater account of the automatic increase in credit needs (caused by
lower taxes and higher unemployment pay-outs as a result of the recession.

Although many differences of opinion remain, widespread backing in the City of
London for the modest programme of reflation favoured by Tory dissidents and
members of the Social Democratic Party, may prove to be an important factor
influencing Sir Geoffrey's thinking during the run-up to the Budget.

No firm statistical comparisons are available, but the brokers surveyed are
reckoned to include all the top sellers of government stocks during 1981.
Mullens, which acts as the Government's broker in the market declined to
comment.  Mr Gordon Pepper, managing partner at W Greenwell, said a target for
public borrowing in nominal terms was simplistic.

"If public borrowing goes up as a result of additional public spending, we throw
up our hands in horror.  If it goes up because the recession is deepening, we
don't mind," he said.  If borrowing rose because of a tax cut, any upward
pressure on interest rates would have to be balanced against the beneficial
effect on industry.

Mr Michael Hughes, head of economic research at de Zoete and Bevan, said that
because of reduced flows of savings, even a public borrowing figure of £9bn next
year would put upward pressure on interest rates.

Mr Peter Turner, of James Capel, flatly disagreed.  He said the public sector
borrowing requirement had been given too much importance both by financial
markets and by the Government.

Boosting borrowing through an increase in public sector investment and tax cuts
for industry would help the economy and might even lead to an interest rate
decline, he said.

Dr Paul Neild, chief economist at Phillips and Drew, said public borrowing of
£11bn next year - £2bn above the Government's aim - would be consistent with the
upper end of the 5 to 9 per cent monetary growth target without undue interest
rate pressure.

Mr Roger Nightingale, economics director at Hoare Govett, said interest rates
would not be affected if the Government cut the National Insurance surcharge on
industry.

"If anything, there is a historical correlation between a high borrowing
requirement and low interest rates rather than the other way around," he said.

Mr Michael Osborne, economist at Grieveson, Grant, said public borrowing of
£11bn next year would still represent a decline as a ratio of total personal
sector savings.  "The argument that an overshoot of £2bn would put that much
upwardpressure on interest rates is just not on," Probably, he said, it would
make no difference at all.

A sterner view was taken by Mr Jeremy Wormell, economist at Pember and Boyle.
"If the Government tried to finance more than £9bn on the gilt-edged market, it
would do a lot of damge."

Mr Tim Congdon, economist at L. Messel, said public borrowing this year was
likely to be lower than the Government's target.  "But I don't want an
undershoot to be an excuse for big tax cuts or spending increases."

Among analysts strongly supporting more borrowing, Mr Malcolm Roberts, senior
economist at Laing and Cruickshank, said a £2bn income tax cut in the next
Budget would have only a limited impact on interest rates.

It would stimulate economic growth by an extra 1 per cent, cut unemployment by
250,000, and lead to tax reflows which would reduce the net increase in public
borrowing to only around £1bn.

Mr Gavyn Davies, senior economic consultant at Simon and Coates, also urged more
borrowing.  He said a £12bn public borrowing target would allow room for a
reflationary stimulus of around £4 to £5bn, centred on a cut in the National
Insurance Surcharge.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1723 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Lifeboat fund ruling favours dependants

SECTION: SECTION I; UK News; Pg. 6

LENGTH: 205 words


ALL BUT a "very insignificant" amount of the Penlee lifeboat disaster fund will
de distributed to the widows and dependants of the men who lost their lives, it
was agreed yesterday.

After a meeting between the trustees of the fund and Sir Michael Havers,
Attorney General, Mr John Moore, chief executive of the Penwith District
Council, said it had been agreed that the fund was a private trust, not a
charitable trust.

Mr Moore added that capital transfer tax might have to be paid on some single
donations of over $3,000 but that these were few and the tax would be "very
insignificant."

Yesterday's decision not only relieves the distress suffered by the
lifeboatmen's families in the last few days, but clears up much of the
extraordinary confusion and misunderstanding which has surrounded the tax and
legal position of the fund.

There were serious drawbacks in the fund being registered as a charity.  Under
the four "heads of charity," which date back to the end of the last century,
charities are allowed to help people only through the relief of poverty, the
advancement of education and religion and "other purposes beneficial to the
community." Neither of these fitted the Penlee circumstances.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1724 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Ex-Ladbroke man for Trident casinos

BYLINE: BY DUNCAN CAMPBELL-SMITH

SECTION: SECTION I; UK News; Pg. 6

LENGTH: 374 words


MR WARD THOMAS, chairman of Trident Television, has brought in a former casino
manager of the Ladbroke Group to join the board of a new subsidiary which will
run Trident's casino interests, newly acquired from Playboy.

Mr Gerald Kushler left Ladbroke in 1978 and has more recently been working as a
casino manager in Alicante.  The Ladbroke Group was deprived by the cowts of
licences to operate its four London casinos in December, 1979, and May, 1980.

The presence of experienced gaming directors, albeit at a subsidiary level, is
expected to be one of the factors influencing Trident's fight to retain licences
for the former Playboy clubs.

No questions were put from the floor in response to the resolution, proposed by
Sir James Hanson, a Trident director, approving the purchase.  It was passed on
a show of hands, with two dissenters only.  The deal will be completed on
Friday.

Replying to general questions about Trident's future, Mr Thomas defended the
arrangements whereby Sir Gordon White and Mr Charles Sweeney will together
receive 5 per cent of the equity of Trident's casino subsidiary, in
consideration of their role as intermediaries to the Playboy deal.

In addition to the Playboy, Clermont and Victoria casinos and a chain of 80
betting shops, Trident's purchase includes a half share with Mecca in two
casinos in Birkenhead and Salford.

On January 25 Trident will begin an appeal against the October decision of the
licensing magistrates not to renew licences for the Playboy and the Clermont
clubs.

Mr Kushler will be joining Mr Peter Neivens, the former Deputy Assistant
Commissioner at Scotland Yard, as well as Mr Thomas himself and two other
directors already appointed by Trident.

Mr Thomas also confirmed yesterday that he is hoping to add one more gaming
director to the subsidiary's board, and a number of non-executive directors.
There is speculation that these could include Mr Jack Gill, the former director
of Associated Communications Corporation who is at the centre of the present
controversy over "golden hand-shakes."

The Trident chairman's comments followed an extraordinary general meeting to
consider the company's purchase for £14.6m of Playboy's UK organisation.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1725 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Why ITT finds that being big is not big enough

BYLINE: Ian Hargreaves; EDITED BY CHRISTOPHER LORENZ

SECTION: SECTION I; The Management Page; Pg. 8

LENGTH: 2138 words

HIGHLIGHT: Ian Hargreaves, in a second article on the U.S. conglomerate,
examines the prospects for its core telecommunications business


INTERNATIONAL Telephone and Telegraph has a couple of big problems in its core
business of telecommunications.  One of them is that the company is too small.

This may seem an odd remark to make about an activity that in 1980 generated
$7bn of ITT's total group sales of $23.8bn and gave what is the world's largest
industrial conglomerate about 9 per cent of the world market in
telecommunications equipment.

But it is true in the sense that, unlike its major competitors -- such as
Sweden's Ericsson, West Germany's Siemens, Western Electric of the U.S., and
Nippon Electric of Japan -- ITT does not have a single market in which it can
claim natural dominance.

In Europe, ITT is present in almost every country, but usually as the number two
supplier to a national competitor.  Where it is number one, as in Spain and
Belgium, there is always the uneasy fear that some day politics, as is happening
in France, will dictate that ITT be robbed of its leadership.

In the U.S., ITT has the problem of living beneath the shadow of a dominant
carrier and supplier (AT and T and its manufacturing subsidiary, Western
Electric) without the compensation of running a strong second.  It has under 2
per cent of the switch market, even with the business it bought by acquiring
North Electric from United Telecommunications in 1978.  In the telephone message
business, which ITT entered only recently, the company is doubling in size every
year, but it still has less than half a per cent of the market.

And as the slow march of deregulation continues, ITT is not only up against the
juggernauts, like AT and T, it is also being jostled by a pack of competitors,
many of them, like MCI Communications and Rolm, young, frisky, and
single-minded.

Outside of the two largest telecomm markets in the world, ITT also has some
problems.  It recently withdrew in frustration from the Brazilian market,
selling its remaining 49 per cent stake in Sesa Rio, rather than stump up the
$35m needed to meet demands being made by the brazilian Government.  Into that
breach has leapt Nippon Electric, an old foe and a company in which ITT once had
a 15 per cent stake.  ITT has also pulled out of South African Telecomms "for
political reasons."

That leads to ITT's second big problem: how do you formulate one strategy to fit
three quite different market positions and, moreover, how do you do it and at
the same time make sense of the broader opportunities created by the convergence
of telecomm and computer technology.

At the moment, ITT does not have an exact answer to this question.  It has
fragments of an answer and is prepared to offer hints as to how they may or may
not one day be assembled into a global strategy.

The fragments are:

Europe.Here at least, intentions are clear.  ITT believes it can hang on to its
traditional market shares in the major European markets (30 per cent in Italy,
25 per cent in West Germany, 16 per cent in France, 65 per cent in Spain and 75
per cent in Belgium -- in Britain, ITT has a share in British Telecom's rival
System X switch) by selling its electronic, digital system 12-40 switch, which
it is developing at a cost of over $1bn.

Disjointed

However, this belief must be gauged in the light of the difficulties ITT has
experienced in trying to catch up in the market for advanced electronic
exchanges and which highlight vividly the problems associated with being a
widely spread international group.  Its efforts have been disjointed and have
led to two of ITT's largest European subsidiaries becoming committed to two
different systems which may well compete on the world market in future years.

The most striking example of this fragmentation of effort is the commitment of
Standard Telephone and Cables, ITTs UK offshoot, to System X rather than ITT's
own System 12.  STC is one of three companies involved in the development of the
system for British Telecom.  The other two are General Electric Company and
Plessey.

STC, long a member of the elite band of suppliers to the Post Office, must also
now show how it can adapt to more competitive forces following the
liberalisation of the market for subscriber equipment.

The late start in advanced electronic exchanges stemmed from the refusal of
ITT's engineers to accept, until five years ago, the need for a digital (rather
than an analogue) approach to switch technology.  (The advantage of digital is
that it breaks telephone messages up into more accurate, faster computer-type
codes.) The success of Ericsson's Axe system convinced them otherwise.  But
there was further confusion as ITT engineers on each side of the Atlantic worked
on rival versions of the System 12, a duplication of effort ended in 1979 by
Fred Gibbs, who had just been appointed head of the telecoms business.  The
cancelled the American programme, but transferred the technology it had
developed -- a distributed logic switch -- to Europe for final development.

One by-product of this hesitation was that by the time Gibbs made the big
decision, standard Elektrik Lorenz, ITT's West German company, had already
submitted the European design, called the 12-30, for an Austrian bid.

When ITT withdrew its 12-30 and tried to re-offer the 12-40 to the Austrians, it
was told it was too late.  ITT now faces the rather humiliating prospect of
being able to maintain its normal one third share of the Austrian market only if
it can get a deal to build a Siemens switch under licence.

There is widespread agreement among informed observers, however, that System
12-40 is as good a switch as any on the market, although its special distributed
logic feature, which permits a customer to buy switching power gradually in
add-on modules, has yet to prove itself in terms of market appeal.

Dominant

But Gibbs is confident.  He forecasts that by 1986 ITT will be selling 6.24m
lines a year, of which 3.75m will be the System 12 family.  He also rejects the
argument that ITT's number two role in Europe is a weakness.  "For a
multinational, I think it is better to be number two than it is to be number
one."

He does not believe that the gradual French takeover of ITT's telecomms business
in that country (the final 16 per cent is about to be nationalised) would have
happened had ITT not been the dominant company in the early 1970s.

The U.S.  Here lies the biggest question mark.  ITT, through its purchase of
North Electric, was positioning itself for a major assault on the U.S. switch
market, thus providing the key to a solidly profitable base for its other
telecomm equipment sales in the U.S., which range from telegraph poles to
telephone handsets and PABXs.  Essentially, ITT has to sell System 12 to AT and
T.

Today, Rand Araskog, ITT's chairman, is very blunt on this subject.  "I don't
think we are going to sell major systems to them unless there is legislation."
The deregulation legislation now before the House of Representatives includes a
provision to force AT and T to buy 30 per cent of its supplies from outside its
own group companies.  But a Senate version of the bill is silent on this
subject.  If ITT does not get its way, says Araskog, he considers the U.S.
market "very dubious."

At present Western Electric makes 90 per cent of AT and T's switches and the
other major phone companies -- apart from AT and T -- like GTE, also have their
own in-house supplier.

At the same time as Araskog says these things, however, his engineers are
working to upgrade a less sophisticated version of System 12, the 12-10,
developed at North Electric, to 12-40 standards.  Financially, that cannot be
justified just for North Electric's business, 60 per cent of which is still with
its old parent, United Telecomms.

Other markets: ITT will continue to export about 25 per cent of its European
switches to third markets and will also continue to form joint ventures in
larger developing world markets, such as South Korea, and Taiwan.

When it comes to communications services, ITT's base for action is ITT Worldcom,
the leading U.S. international telex carrier, with 35 per cent of the market.

That base has already been expanded, as deregulation occurs, to take in inland
U.S. telex services, trunk telephone services and eventually, says George Knapp,
head of Worldcom, international voice traffic.  Knapp thinks that international
voice (now an AT and T monopoly) will be deregulated and that because of its
already strong ties with the European telephone companies, ITT is a natural
number two in this market, perhaps as a common carrier for some of the other,
smaller telephone companies, such as MCI.

Worldcom, says Knapp, is also working hard on the technology of connecting
compatible streams of computer language and solving other problems.  This, he
says, is vital to the development of high margins services, as opposed to simple
common carrier functions.

But Worldcom, even in its dramatically expanded form, is only part of ITT's
thinking about communications services.

Araskog has recently appointed Robert Braverman to head a group which is
designed to draw together the strengths of Worldcom, ITT's publishing interests
(which include 'phone directory yellow pages.  Who's Who and other books) and
its vocational training services.

Braverman sees ITT becoming a kind of communications master - contractor,
building up ownership of, or access to, vast data bases and transmitting the
goods to customers on ITT lines.  Eventually, he says, ITT could, for example,
be running the entire communications function of other companies.

ITT, says Braverman, is probably the only company in the world able to offer a
mix of central office switching (main public exchange) equipment, telephone
hardware, maintenance, data bases, training and access to its own international
communications network.

The obvious missing piece in all this, however, is data processing.  ITT sells
home computers manufactured by a West German company in Europe (it used to sell
Apples, until it fell out with the Californian company) and tucked away in
Europe it has a collection of companies which together form the tenth largest
semiconductor business in the world.  But so far, ITT has fought shy of
computers and of the kind of equipment that will be needed for communications
within the electronic office, downstream from the PABX, in cases where the PABX
is the nerve centre.

Expertise

"We are not going to duck the data processing field out of any fear of it," says
Araskog, who, in 1978, conducted a serious hunt for a manufacturer of computers.
One of the companies he looked at, although never talked to, was Wang
Laboratories.  "It would take something like that to be attractive to us as
opposed to building on what we have now," he says.

What ITT has now to build on are its considerable microprocessor expertise in
West Germany and the UK, a new software research centre in Shelton, Connecticut,
and two U.S. companies bought in 1978: Qume and Courier.

Qume makes high-speed printers for word processors and Courier makes video
display screens for IBM.

These two companies, says Araskog, are now developing long-range plans, the
details of which he will not disclose, to diversify from their existing
products.  "At some point they will come more together, particularly in relation
to the planning and software activity going on at headquarters level," he says.

That is safely vague and stops well short of the acceleration into advanced
electronics products which some ITT critics would like to see.

But for the moment, Araskog is playing it cautiously.  He obviously wants to see
the outcome of the deregulation decision.  He also needs to become clearer on
whether ITT will pull off a major divestiture, whether of the forest products
division currently on the block or something else.The proceeds of such a sale
would mainly be used to pay off debt, but could also lead to a significant
acquisition.  Yet another financial possibility, says Araskog, is to float off
the new Braverman group, complete with Worldcom, as a separate company.

So, ITT-watchers are left with fragments.Their comfort, perhaps, should be that
ITT's caution thus far has been rewarded with a steady stream of profits
(normally a third of ITT's total) from telecommunications.

Having seen the consequences of the disastrous efforts by Northern Telecom,
Canada's leading manufacturer of public telecommunications equipment, to break
into the electronic office, ITT is not about to follow suit.  But there is
little doubt that telecommunications, the bedrock upon which Harold Geneen built
his conglomerate, will be there at the base of ITT for a long time to come.
That is something which cannot be said with certainty for any other part of ITT.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1726 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

BYLINE: Ian Hargreaves; EDITED BY CHRISTOPHER LORENZ

SECTION: SECTION I; The Management Page; Pg. 8

LANGUAGE: ENGLISH

GRAPHIC: Graph, The fragmentation that has been as much in evidence in ITT's
telecommunications activities as in the group as a whole has presented Fred
Gibbs, head of this part of the conglomerate's business with a number of
dilemmas.  The independence given to overseas subsidiaries, particularly in
Europe, has at times resulted in product development programmes running along
separate lines with different versions of the same product emerging and, even
more extreme, the UK subsidiary committing itself to a product rivalling that
developed elsewhere in the group.  Now, while trying to establish greater
cohesion, the telecommunications business is beginning to find itself more
exposed to competitive forces in some traditional markets; Illustration, The
fragmentation that has been as much in evidence in ITT's telecommunications
activities as in the group as a whole has presented Fred Gibbs, head of this
part of the conglomerate's business with a number of dilemmas.  The independence
given to overseas subsidiaries, particularly in Europe, has at times resulted in
product development programmes running along separate lines with different
versions of the same product emerging and, even more extreme, the UK subsidiary
committing itself to a product rivalling that developed elsewhere in the group.
Now, while trying to establish greater cohesion, the telecommunications business
is beginning to find itself more exposed to competitive forces in some
traditional markets; Picture, The fragmentation that has been as much in
evidence in ITT's telecommunications activities as in the group as a whole has
presented Fred Gibbs, head of this part of the conglomerate's business with a
number of dilemmas.  The independence given to overseas subsidiaries,
particularly in Europe, has at times resulted in product development programmes
running along separate lines with different versions of the same product
emerging and, even more extreme, the UK subsidiary committing itself to a
product rivalling that developed elsewhere in the group.  Now, while trying to
establish greater cohesion, the telecommunications business is beginning to find
itself more exposed to competitive forces in some traditional markets.

                   Copyright 1982 The Financial Times Limited


                             1727 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

A rich summer

BYLINE: Chris Dunkley

SECTION: SECTION I; The Arts; Pg. 9

LENGTH: 2237 words

HIGHLIGHT: Chris Dunkley looks back at television, 1981


Only an insomniac polymath with two video recorders could legitimately offer a
single sentence assessment to cover the whole of television for 1981.
Conclusions such as "It was a great/average/poor year" become more and more
suspect.  Not only does television now transmit such a quantity of material that
it is impossible for one person even to be sure of seeing all the highlights,
but in contrast to the theatre, cinema, and concert hall the huge variety of
material conveyed via this medium is such that any single conclusion must almost
inevitably be wrong for some parts of the output.

What is more, whereas my fellow critics on this page deal with finished products
resulting from processes deliberately undertaken by one or more artists, be they
dancers, actors, painters or whatever, some of the most interesting and
significant material on television is either unfinished or the result of
anything but deliberate intent.  News, current affairs and sports programmes
(not to mention inept continunity announcements) are full of such chance
occurrences.

They may be communicated with greater or less technical expertise and one might
usefully review the standards of such techniques.  But it would be very odd to
offer an equal welcome to three great new plays in the theatre and three
assassination attempts on television (Ronald Reagan, the Pope, and Anwar Sadat,
the last tragically successful) merely because the assassination attempts were
shown in all cases quickly and in two cases clearly in all our sitting rooms.

Some commentators find the mediation of current events by television deeply
ominous.  Nothing is "real" any more they say, every world-shaking event becomes
merely another television programme.  It is true that, once again in 1981,
television was swiftly and closely involved with the year's major happenings:
the freeing of the U.S. hostages in Iran, the inauguration of Ronald Reagan, the
H-block hunger strike deaths, the space shuttle journeys, street rioting in
Brixton and Toxeth, the Warrington, Crosby and Croydon by-elections, the
cowardly IRA bombs in London, and latterly oppression in Poland.

Yet the claim that television somehow reduced all these to uniformity or
lessened their impact seems to me absurd, little more than a vivid example of
the transference of the listender's guilt to the bringer of unwelcome messages.
Is it seriously suggested that in the days when such occurrences were "newspaper
events" or before that "word of mouth events" public reaction was healthier or
wortheir or the events more "real"?There is support for the guilt-transference
theory in the fact that the objections disappear when the event is a happy one.

It was just such an occurrence which provided THE television event of 1981 if
you judge by size of audience, frequency of repetition, and memorableness among
the public: July's wedding of Prince Charles and Lady Diana Spencer.  I happened
to be in a small town in Sardinia at the time, but could still see four hours of
the procession to St Paul's, the ceremony itself, and the return to the palace,
all broadcast live.  Moreover, back in London review copies of the wedding on
videocassettee from both the BBC and ITV were waiting for me: evidence not only
of the beginning of a revolution in technology, but also of a completely
different relationship developing between broadcaster and public.  About 1 1/2m
British homes had acquired video recorders by the end of 1981, and thus the
capacity to become their own programme schedulers.

What with that and Teletext (1/3m in use now, 1/2m more to be manufactured in
1982) and the BBC launching the biggest push ever in home computers, it would be
easy to devote 2,000 words to hardware alone, but we must get back to the
soft-ware, or programmes as they say . . .

Despite the natural reservations expressed above, I started my mental review
feeling that the year was probably about average.  Forced by the number of
programmes to start making lists, however, I realised that the unimpressiveness
of the most recent season had coloured my view of the year as a whole; the
spring and early summer were, surely, extraordinarily rich.

It would take stubborn ingratitude to dismiss as merely "average" a year in
which drama series and serials included To Serve Them All My Days, The History
Man, Hitch Hiker's Guide To The Galaxy, Sons and Lovers, Honky Tonk Heroes (an
ATV series about a London club for cowboy "dudes" which received less attention
than it deserved), Bognor (also undervalued), My Father's House, Bread or Blood,
BBC2's powerful and moving serial about the social history of 19th-century rural
England, the gloriously funny Private Schluz, Maybury, an inconsistent but brave
and interesting series about a psychiatric ward, and The Flame Trees of Thika --
and all those without even mentioning the obvious winner of all the awards in
this category, Brideshead Revisited.

Comedy as a whole was weak verging on the pathetic, much situation comedy
sounding as though it had been extruded communally by a committee of sociology
lecturers.  A seemingly unending procession of scripts lined up to poke fun in a
neurotic way at wimps: wet impotent males.  As the months passed and the
ineffectual separated husband was replaced by the cringing divorce who was
overtaken by a snivelling widower and a man in his 30s with the thickest head of
hair ever seen babbling about going bald, one longed for an edict demanding that
script writers supply ten good jokes for every further draught of purgative
autobiography.

Almost alone Hi De Hi! bucked the trend, with its big cast, high
professionalism, willingness to allow comedy to grow naturally out of character,
and determination to provoke the viewer to laughter rather than group therapy.
It deserves all the honours it will collect.  The only other sitcom to mention
is Holding the Fort by newcomers Marks and Gran who work hard and to good effect
on their dialogue.  But this was their second run.

The Innes Book Of Records was again unique and cherishable for the scrupulous
and loving detail with which it is made, but the only series which might be said
to approach the level of healthy iconoclasm boasted by the 1960s satire shows
was Not The Nine O'Clock News, and the best they could do in 1981 was to repeat
their shows from 1980.  Had BBC2 only managed to sustain and somehow organise
the raw talent which was sometimes bursting out of London's Comic Strip,
sometimes collapsing in it, they could have made the year's freshest comic
series but after one episode Boom Boom Out Go The Lights simply disappeared.

The biggest contrast of all between that golden age and the past year was in
single plays.  Jonathan Miller finally managed in 1981 to impose a sense of
house style on the BBC's complete Shakespeare, partly by systematic references
to paintings, giving us a memorable All's Well and an engrossing Antony and
Cleopatra. Don Taylor and Louis Marks produced a marvellous The Crucible on
BBC1.  But those are all old plays.

Only three new plays stick in my memory: Tony Perrin's retelling of the ETU
ballot-rigging scandal, The Union; John Mortimer's account of the
Hitlerinfatuated Mitford girl, Unity; and Going Gently, Thomas Ellice's play
from Robert S. C. Downs' novel in which Norman Wisdom and Fulton Mackay played
two men dying in a cancer ward and Judi Dench played their nurse, all under
Stephen Frears' direction.  Its toughness, compassion and honesty will stay with
me a very long time.

In summary, then, television drama in 1981 saw an acceleration in the drift away
from the single play and towards series and serials, a movement which, as I have
said before, seems quite natural and unexceptionable in this medium.  A parallel
shift continued in documentaries.

Admittedly there were among the single documentaires rather more borderline
cases than among the plays, and many works which, though pushed in under
umbrella titles, were really one - off productions.  Thames Television's Take 6,
for instance, included several exciting programmes by brand-new directors, and
Man Alive presented a memorably stark and honest edition on road safety.

Among those actually presented as single documentaries my own shortlist for
awards, in transmission order, would be Philip Speight's delightful and delicate
film about a piano tuner, The Glazebrook Touch; Peter West's quirky account of
taxidermy, Lion; and Edward Mirzoeff's programme The Englishwoman And The Horse
which was sometimes hilarious, sometimes mind boggling, yet never unkind.

All three were on BBC 2 and since the same channel carried The History Man,
Hitch Hiker's Guide, Sons And Lovers, Bread Or Blood, Private Schulz, Maybury,
Unity, Going Gently, The Innes Book of Records, and Boom Boom Out Go The Lights
as well as five out of the six best documentary series, it earns a special
mention as Channel Of The Year.

In autumn 1982 BBC 2 controller Brian Wenham may have to look to his laurels
when Channel 4 comes on the air -- though it may not be his pigeon by then since
his successes must have earned him a very strong claim to the job of managing
director BBC Television which is vacated by Alasdair Milne as he moves up to
director-general.

Those five documentary series were Robert Kee's Ireland, A Television History
which, like its ITV counterpart The Troubles was long overdue but all the more
welcome; The Marking of Mankind in which I learned much from Richard Leakey's
palaeontology even while being annoyed by his preaching; Personal Pleasures With
Sir Hugh Casson which did indeed provide much pleasure; the snappy, humorous and
invigoratingly sensible Snowdon On Camera which proved to be that rare
phenomenon, a television series that was (if only slightly) too short; and
Fighter Pilot which would have seemed even more remarkable had we not already
seen Sailor, Strangeways and so on.

Having singled out BBC2, justice demands a special mention also for Granada
Television, the only original ITV company surviving to celebrate its silver
jubilee in 1981.  That alone may not be worth a medal, but the company's
continued record certainly is.  Not only did they bring us Brideshead Revisited,
the best drama of the year and probably the best television adaptation ever, but
their television journalism continued to stand head and shoulders above the
rest.

Their series Rich World, Poor World explained with uncompromising candour and
awful clarity the invidious relationship between north and south, first and
third worlds.  They commissioned Jack Gold to film Kenneth MacMillan working as
choreographer and in A Lot Of Happiness he turned in the best televised analysis
of ballet I have ever seen.  They continued with Brian Lapping's unique
"hypotherticals" and, thanks to Leslie Woodhead, supplied both of the year's
best drama documentaries: Strike which last month re-created in minute detail
the birth of Solidarity in the Lenin shipyard, and earlier Invasion which,
perhaps did an even more extraordinarily impressive job on the toppling of
Dubcek.

Elsewhere the drama documentary remained vaguely unpopular, mainly because few
organisations except Granada will provide the money, the time and the trouble
that this form needs.  Jeremy Isaacs, now heading Channel 4, reconstructed a
violent and oddly selective version of the life of murderer Jimmy Boyle in A
Sense of Freedom for Scottish TV; and BBC2 gave us The Jail Diary of Albie Sachs
with a powerful performance from Stratford Johns as an Afrikaner gaoler, and
also another short series of Michael Wood's joyous historical investigations In
Search Of (Athelstan, Ethelred, William the Conqueror).

The regular current affairs series carried on much as before with BBC1 out in
front, Panorama having a good year, Question Time making itself compulsory
viewing, and Nationwide changing for the better when Roger Bolton moved over
from Panorama as editor.  Granada's World In Action stayed on an even keel, but
Thames's TV Eye too often induced sleep.  The best new current affairs programme
was The Pursuit Of Power, a series of shrewdly revealing political interviews by
Robert McKenzie who, sad to say, died in October.  There will be other political
commentators but McKenzie is irreplaceable.

It was of course yet another year in which television's own activities
frequently made news: the BBC acquired a new charter, the IBA sacrificed
Southern TV just as it entered the most impressive period in its history, a
national Broadcasting Complaints Commission was established, and the licence fee
went up to £46.  "Primetime," the first serious television magazine for many
years, was launched and, despite occasional substitutions of quantity for
quality, showed tremendous promise.

As ever there was an outrageous amount of talk about the industry, much of it
deeply gloomy.  Yet income to commercial television was the highest ever (net
revenue for November, the latest recorded month, was 36 per cent up on 1980) and
international programme awards flooded in as fast as ever.  If British steel,
extiles and shipping were as healthy as British television there would be little
to worry.

LANGUAGE: ENGLISH

GRAPHIC: Picture, Anthony Andrews and Jeremy Irons in Brideshead Revisited

                   Copyright 1982 The Financial Times Limited


                             1728 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Punch and Judy;
Drill Hall, WC1

BYLINE: By DOMINIC GILL

SECTION: SECTION I; The Arts; Pg. 9

LENGTH: 480 words


Expanding his scheme already flourishing in Zurich, David Freeman has brought a
branch of the "Opera Factory" to London: an experimental opera ensemble, working
under the "umbrella" of the English National Opera, and on shoestring budgets,
which will seek "the luxury of being able to question many of the assumptions
about opera and its role in society which a large company, because of its very
size, can afford neither the time non the money to do." Opera Factory's new
venue is the Drill Hall (once Action Space) in Chenies Street.  Its first
production is a revival on eight nights this month -- unbelievably, the first on
stage since the premiere in Aldeburgh nearly 14 years ago -- of Harrison
Birtwistle's Punch and Judy.

It is a brave gesture: but it is not a very illuminating one.  Mr Freeman has
chosen the one post-war piece of music-theatre that is most firmly and
unambiguously conceived in terms of an entirely static stage presentation -- a
work whose every ebb and flow of movement and complex dramatic counterpoint
resides, and is expressly designed to reside, in the words and music alone.  He
has added to this gravely ritualistic frame such a flurry of stage business,
such an agitation of visual connection and urgent, sweating movement, that he
shakes the piece to death like a broken puppet on the end of a string.

Did Mr Freeman ever pause to reflect why it is that Birtwistle's Punch and Judy
makes not only such a brilliant, but also such a complete, effect in concert
performance?  Visually, the work summons no more than the barest symbolic
reference, all of the tension, the movement, the colour and contrast is
contained, densely and unrelentingly, in the score.  Brasses bray; percussions
snap; voices sneer, cry out in heartbreak; strings and reeds fizz with conflict.
In the whole of Punch's one hour and 45 minutes there is not, even where a
sudden mirage of lyrical tenderness, vanishing like smoke, would try to persuade
us otherwise, a single moment of relaxation or rest.  And that extraordinary
momentum is achieved without the twitch of a face muscle or a pointed finger:
when the minimal stage directions have been complied with, there is, quite
simply, nothing to add.

So much is added, indeed, that even Birtwistle's irrepressible score is
sometimes overwhelmed: at crucial moments the focus is wrenched, time and again,
from the music to the scene.  The musical performance given by the Endymion
Ensemble, when one could centrate on it, was very good: rhythmically strong,
crisply etched, and excellently balanced by the conductor Howard Williams.  Omar
Ebrahim's sinuous, punky Punch, Graham Titus's Choregos, Hilary Western's Judy
and Marie Angel's splendidly sexy Pretty Polly make their marks vigorously in
Freeman's scheme: more's the pity that it bears so little relation to
Birtwistle's own.

LANGUAGE: ENGLISH

GRAPHIC: Picture, Omar Ebrahim

                   Copyright 1982 The Financial Times Limited


                             1729 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

PLG Young Artists;
Purcell Room

BYLINE: ANDREW CLEMENTS

SECTION: SECTION I; The Arts; Pg. 9

LENGTH: 401 words


The Park Lane Group's week of recitals wedding young performers to 20th-century
music has become one of the more welcome fixtures in the concert calendar of the
early new year.But the 1982 series began on Monday in the Purcell Room less
auspiciously than usual.  The blame could be laid only marginally on the
performers, partly on the debilitating heat of the hall (over the Christmas
break the air conditioning in the Purcell Room has become deranged) and most of
all on the PLG's programming.  These series have long had their tics, but
usually in the past they have still produced lively, well balanced evenings.

The present five concerts feature the music of Michael Finnissy and Giles
Swayne.  Two of Swayne's pieces were included on Monday, a programme shared
between the clarinettist Mark van der Wiel, accompanied by Robert Lockhart, and
the violinist Paul Barritt with the pianist William Howard.  Both are
technically highly accomplished.  If Mr Barritt made the stronger impression on
this occasion, Mr van der Wiel's cause was hardly helped by his selection of
works.

Lutoslawski's Dance Preludes need more careful pointing and colouring to give
them an impact and William Alwyn's clarinet sonata rambles unconvincingly; it
never strikes a balance between declamation and reflection, and the performance
was similarly left in two minds.  Mr van der Wiel should have seized the chance
to show his worth in Stravinsky's Three Pieces for solo clarinet (from all
accounts he has played them before in London most memorably) but his account was
subdued and unsettled; his best form was paradoxically reserved for Swayne's
Canto, simulating much fury, but ultimately quite empty and pointless.

Paul Barritt's studied performances were lavished on music that benefited from
such gemmed precision: Webern's miniscule Four Pieces Op. 7 and Stravinsky's Duo
Concertante. He was also allotted a piece by Giles Swayne -- the Duo for violin
and piano, less banal then the clarinet work, and sustaining a convincing
structural plan -- but he included as well Judith Weir's Music for 247 strings,
tricksy little miniatures (10 of them, lasting around a minute each) largely
made up of rhythmic unisons between violin and piano and belatedly introducing
some disjunctions.  They are charming in their own way, without any claims to
profundity or technical sophistication.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1730 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

The Butler Did It

BYLINE: by B. A. YOUNG

SECTION: SECTION I; The Arts; Arts; Pg. 9

LENGTH: 175 words


The four potential heirs to the fortune of an international ballet star spend
the night in his haunted house, Farque Hall.  They are called Major Catastrophe,
Miss Take, Ivor Smallpiece, Ivanta Havalot, Egor Blimey, and Rick Slick. There
is another uncredited character in the company, a ghost.  As the play is a
whodunit, the intrusion of an uncredited character, even a ghost, can hardly be
called fair play.  Nor is it made more attractive by having every death, or
apparent death, marked with the appearance on the stage of a jock-strap.  But as
the play is rubbish from beginning to end, this is as acceptable as anything
else.

Richard and Laura Beaumont wrote the script and the lyrics.  They also take two
of the parts.  Bob Sellins wrote the tunes.  Maurice Lane is the director.  The
only acting that looks like anything but rag week at a bad university is by
Billy Hartman as a private detective.  At the end of Act 1 he says: "Should
anyone wish to leave, now is the time to do so." The temptation was almost
irresistible.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1731 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Papandreou's curate's egg

SECTION: SECTION I; Editorial Comment; Pg. 10

LENGTH: 696 words


THE MOST that can be said for Dr Andreas Papandreou's industrial programme for
Greece is that it is well intentioned in parts and may be a smokescreen behind
which he intends to retreat from some of his more extreme past positions.  But
it is also imprecise in detail, fraught with danger for an already poor
investment climate, and largely irrelevant to some of the country's chief
economic problems.

The attack on tax evasion which the Greek Prime Minister promised in his
television speech on Sunday is overdue in a country where this form of national
sport costs the Government about a third of the revenues it is entitled to.

Inefficiency

Dr Papandreou also showed what could prove to be welcome evidence of realism in
his approach to the problem of large industrial enterprises in trouble because
they owe too much to the banks.  Those found not to be viable would be wound-up.
But Dr Papandreou created no clarity about the "socio-economic" criteria that
would be applied in deciding which enterprises may survive.  That phrase opens
the door wide to considerations of social expediency which conflict with and
eventually will succumb to market forces.

Those enterprises chosen for survival will come under the aegis of a Government
agency especially set up for the purpose.  Given the notorious inefficiency of
the Greek bureaucracy one may doubt whether such an agency really will perform
better than present managements, even given their evident shortcomings.

The proposal falls short of nationalisation, ranking instead as "socialisation"
in Dr Papandreou's vocabulary.  In several key sectors of industry
"socialisation" is to take the form of the appointment of supervisory councils
representing labour, management, the government, and local authorities.  These
councils are to ensure that corporate policy and planning fit in with the
overall industrial aims of the government in Athens.

Whereas a case can be made out for creating some such channels of
communications, either institutional or informal, the dangers are self-evident,
and especially so in Greece where nepotism is a way of life.  Moreover the
concept reveals a contradiction between Dr Papandreou's proclaimed objectives.
On the one hand he wants a greater degree of decentralisation: on the other he
is creating institutions, such as the agency to supervise those lame ducks worth
saving, which will increase the direct influence of the central government.

Dr Papandrou's proposals barely address two fundamental problems of the Greek
economy: the over-regulation of the banking system, and the extreme
fragmentation of industry.  The country has almost 130,000 industrial
enterprises employing, on average, 5.5 persons each.  A large proportion will
not survive as Greek tariffs and especially non-tariff barriers against EEC
industrial goods are eliminated.

Besides a consolidation of its industrial structures, Greece needs a steady flow
of foreign direct investment to compensate for a chronic deficit on current
external account.  Dr Papandreou said that foreign investments would be welcome,
provided they were profitable to the Greek economy.  He also foreshadowed
controls to prevent transfer pricing, a device by which the foreign investor can
attempt to reduce his tax bill in Greece.

Incentives

There may be little to quarrel with the principles involved, but given the
interventionist tenor of Dr Papandreou's speech, their application may further
deter foreign investors.  Uncertainties do not end there.  Dr Papandreou's
failure to clarify how he wishes to alter the terms of Greek membership in the
EEC cannot but worsen the investment climate for both foreigners and Greeks.

Given the backwardness of the Greek economy there is a case for special measures
and incentives to strengthen industry.  But an attempt to override the market
and give bureaucracy more powers of intervention is not the right way.  It is
problematic enough in France which boasts an industrially skilled civil service.
In Greece with an already bloated bureaucracy, Dr Papandreou's approach is
fraught with economic as well as political dangers.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1732 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Turbulent times ahead

BYLINE: By Michael Donne, Aerospace Correspondent

SECTION: SECTION I; World Aircraft Markers; Pg. 10

LENGTH: 1950 words


THE OUTLOOK for the world's major jet airliner manufacturers in 1982 is bleak.
With losses estimated at over $1bn in 1981, and comparable, if not worse,
figures being forecast for the coming year, the airlines are in no mood to go
equipment-hunting.

Most manufacturers are still confident that eventually there will have to be a
substantial upsurge in procurement, as airlines, facing soaring costs of all
kinds, seek to acquire new-generation aircraft with substantially improved
payload capacities and greater fuel efficiency.  Some airlines have already
begun to buy such aircraft but on nothing like the scale that most manufacturers
expect.  They still think the world's airlines will spend some $126bn by 1992 on
about 5,000 new-generation jets of all kinds.

The severe recession in the world air transport industry over the past year has
already resulted in some traumatic changes among the major manufacturers.  The
result is that Airbus Industrie of Europe has now become the world's second
biggest jet airliner manufacturer after Boeing of the U.S., especially for
wide-bodied jets.

The rest of the decade will see yet more battles particularly for a slice of the
150-seat short-to-medium range aircraft market.  Three major groups of
manufacturers plan to build their own versions of a short-to-medium range
150-seater in the next few years.  There could be a market for as many as 2,000
of this kind of aeroplane by the end of the century, worth well over $20bn
including spares.

The next few years may also see far greater involvement by the Japanese.
Western aircraft makers have been wooing the Japanese hard and there is no doubt
that they, for their part, are interested in participating in the 150-seat
project.

The accompanying table shows how each of the major jet airliner builders has
performed this year.  The poor showing by Lockheed (five new orders, with three
cancellations) has been the prime reason for that company's decision to end
TriStar production from 1984.  McDonnell Douglas has done better, but still not
as well as it had hoped.  Airbus has continued to make rapid progress,
especially if the conditional order from Air France for 50 (25 firm and 25
options) for the proposed new A-320 150-seater is included.  This depends on
that aircraft going ahead to full development and production.

Boeing remains top of the league, with orders for 206 airliners this year (well
down on last year's 324, but still yielding a welcome $6bn worth of new
business).

The big battles in the world airliner market place are now being fought between
Boeing and Airbus Industrie, with the Boeing 767 ranged against the Airbus
A-300, and the Boeing 757 against the Airbus A-310, all in the short-to-medium
range market.

Boeing remains in a class of its own with the big 747 Jumbo, and is likely to
have this market all to itself for as far ahead as anyone can foresee.
Competition from the Lockheed TriStar is now virtually over, while McDonnell
Douglas's DC-10 is only just holding its own.

In production terms, Airbus Industrie is expanding fast, raising its output from
four aircraft a month to reach eight a month by 1984.  Boeing has cut back
output of 747s to meet tighter market conditions, while demand for the
mediumrange 727 is shrinking fast.  The bigger, new-generation 757s and 767s are
only just beginning to emerge, and some new orders for these are expected during
1982.

Boeing is also boosting production of its small 737 shortrange jet.  A new,
improved Series 300 model is under development and production is running at 10
aircraft a month, making the 737 currently the world's best-selling jetliner.

Beyond all these models lies the short-to-medium range 150-seater, involving
three major groups -- Airbus with the A-320, Boeing with the "7 Dash 7," and
McDonnell Douglas/Fokker with the MDF-100.  But plans for all these models,
which have been floating around the world's aerospace and airline industries for
some time, are maturing only slowly and the current airline recession appears to
have pushed back the prospective in-service date of any of them to 1986 or 1987,
or even perhaps 1988.

The 150-seater twin-engined airliner fills the slowly emerging need for an
aircraft in the short-to-medium range category between the 737-300 of about 138
seats, and the larger Boeing 757 of 180 to 200 seats.  The most immediate
pressure for it is coming from a handful of U.S. airlines, such as Delta,
Eastern and United, each of whom need about 100 aircraft.

Boeing's original plan to turn the existing three-engined 727 into a
twin-engined airliner appears to be fading.  But the company is still reluctant
to get into this new venture too soon, largely because it is already spending
more than $2.5bn on developing the 757, 767 and 737-300, and cannot afford to
launch another new programme just yet.

Of all three contenders, Airbus appears to be pushing its A-320 hardest, and
still maintains it can get it into service by 1986.  McDonnell Douglas/Fokker is
prepared to match that, but believes 1987 to be more realistic.  Boeing believes
1988 to be a more sensible target, in the light of current airline financial
difficulties and uncertainties about the rate of traffic growth once the
recession ends -- it feels the rate may be slower than many analysts now believe
likely, about 4 per cent rather than the popularly believed 5 to 7 per cent a
year.

Boeing's reluctance to become enmeshed in another new airliner programme does
not mean, however, that it will not compete if it has to.It already has a big
team involved on the "7 Dash 7," and if it enters the market, it will do so
determined to win the lion's share of it.

None of the manufacturers involved are without their problems.  All need cash --
each of the planned 150-seaters will cost up to $2bn to develop (or about the
same as the existing A-300, A-310 Airbuses).  The manufacturers are likely to
have some difficulties in raising the money.

Airbus will certainly have to get cash for the A-320 from the French, West
German and British Governments.  The French Government has already pledged
support in principle, but the British and West Germans are more cautious,
waiting for firm proposals from their aerospace industries on cost and
worksharing before taking decisions.  These plans are now being worked out, and
will be presented to the governments in the first half of 1982.

So far as the MDF-100 is concerned, the Dutch Government has pledged support for
Fokker, but McDonnell Douglas will still have to find its share of the money
from its own resources -- as will Boeing for the "7 Dash 7."

This need for cash is one major reason why all three groups are wooing the
Japanese aerospace industry for support in the 150-seater concept.  Japan is
anxious to expand its own aerospace industry, and sees the 150-seater as one
good way in which to do it.

Japan is prepared to spend substantial sums on its share of a 150-seater
venture, provided it can gain new advanced technological knowledge in
return.This is why the Japanese industry is already undertaking 15 per cent of
the Boeing 767, and would like perhaps as much as 20 to 25 per cent of any
150-seater.  But while all three western manufacturers are wooing the Japanese,
the latter are in no hurry, and would like to have much firmer detailed
proposals on costs and worksharing before making any commitments.  Even so, a
decision is likely to come some time in 1982.

All the prospective manufacturers of the 150-seater agree that the primary
"pacing factor" will be the availability of a suitable engine.  So far, three
candidates appear to be in the field -- the joint Rolls-Royce/Japanese [TEXT
ILLEGIBLE] 500, a new version of the Franco-U.S. (Snecma-General Electric)
CFM-56, and a derivative of the Pratt and Whitney (U.S.) PW-2037 called
PW-STF-633.  All these power-plants will need to be of around 25,000 1b thrust.

So far, the RJ-500 appears to be at least two years ahead, with "demonstrators"
(proving the overall validity of the design concept) due to run on test-beds at
Derby, and at Ishikawajima-Harima Heavy Industries in Tokyo next month.

But engine development is as costly as airframe development -- about $1bn for a
single new power-plant.  Because of this, General Electric of the U.S. has
decided not to develop another new engine of its own for the 150-seater,
preferring to go along with its existing investment in the CFM-56 with Snecma.
Pratt and Whitney meanwhile has been discussing the possibility of joining with
Rolls-Royce and the Japanese on the RJ-500.

Rolls-Royce and the Japanese are confident that if only they can maintain the
pace of development on the RJ-500, the have an excellent chance of being the
"launching" engine in more than one of the prospective airframes.  As with the
A-320 airframe, however, the UK Government will have to make a substantial
investment in the full development of the RJ-500, as will the Japanese
Government, and they will want to be assured that the market is big enough to
make that investment profitable.

All this explains why the discussions now under way on both the airframes and
engines for the 150-seater are so complex, and why they are so slow to mature
into firm programmes backed by airline orders.  No one doubts that such
programmes will eventually emerge.  The major uncertainty is over who, if
anyone, will drop out of the race because they cannot finance the heavy capital
investment necessary.

Beyond even the 150-seater, there remain some substantial further investments in
a wide range of other new civil aircraft for the long-term future.  In the UK,
British Aerospace is spending well over £250m on its BAe 146 four-engined
feeder-liner, with only 13 firm orders and 12 options won so far, although the
eventual market could run to several hundred aircraft.

For all that the immediate future seems grim, therefore, for the longer term the
outlook is much brighter.  The uncertain factor is just when the improvement in
the airlines' and the manufacturers' fortunes will occur.  Some analysts have
suggested that for the airlines better times may begin to emerge by the end of
this year.  But for the most part, the airlines and the manufacturers are
resigned to the fact that it may now be 1983, or even 1984, before they can
expect the worst to have passed.

In the meantime, the objective will be survival, and the battles for those few
airliner orders anticipated in the coming year will be fought even more bitterly
than those of the past 12 months.
                           JET AIRLINER ORDERS 1981
                    New orders in 1981       Value     Total ordered   Total
                                                                     deliveries
  Manufacturer        (type & number)     (approx.) *    to date +    to date
                       A-300       26          $2.25bn      324             158
Airbus Industrie                       45                        502
                       A-310       19                       178             § -
                        A320  * ++ 50           $1.5bn       50             § -
                         727       24                     1,824           1,784
Boeing                   737      129                       990             730
                         747       22             $6bn      586             536
                         757       24                       136             § -
                         767        7                       173             § -
British Aerospace        146       25            $375m       25             § -
Fokker (Holland)        F-28       21            $250m      191             174
Lockheed              L-1011        5            $200m      241             217
                   (TriStar)
McDonnell Douglas      DC-10       20            $800m      409             362
                       DC-9        28            $500m    1,112           1,025




* Includes spares where known.

+ Includes options where these are announced by manufacturers (Boeing does not
include options in its totals, whereas Airbus does).

++ Conditional order by Air France, including 25 "firm" and 25 options.

§ Deliveries of A-310s, A-320s, Boeing 757s and 767s, and BAe 146s have not yet
begun.

LANGUAGE: ENGLISH

GRAPHIC: Picture, no caption

                   Copyright 1982 The Financial Times Limited


                             1733 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Manipulating the money supply

SECTION: SECTION I; Editorial Comment; Pg. 10

LENGTH: 697 words


THE CITY seems to have found some cause for relief in the modest quarter-point
rise in the money supply reported for the three weeks of banking December.  This
makes some market sense.  Guesswork, based on the continued aggressive drive of
the clearing banks into new markets, had suggested a far higher figure: There is
little comfort, however, for any remaining adherents of what a senior director
of the Bank of England has called the "theology" of monetarism.  The figure is
grossly deceptive.

Explanation

The oddity can most readily be seen in the very large gap between the expansion
of bank lending -- about £1 1/4bn -- and the much more modest expansion of bank
deposits, about £300m.  These figures can readily diverge for a time when taxes
are being collected, or Government stock has been sold in large amounts, but
when they do so month after month, the explanation is no longer routine.  After
all, monetarists are inclined to regard money and credit as two sides of the
same coin, and it is a very different coin which has two sides of quite
different size.

The explanation is as strange as one might wish.About half the growth of bank
lending -- and more than half in November -- has been financed directly by the
Bank of England, which bought another £600m worth of commercial bills.  It now
seems likely that over the financial year as a whole the Bank will be a
commercial lender to the tune of some £4bn.  Aggressive lending is an odd way to
operate a credit squeeze.

Statistically, this makes a kind of sense.  Bank lending can be financed in
three ways -- from the accumulated profits of the banks, from new bank deposits,
which are "money," or from the sale of other assets of the banking system.  For
years the banks have been financing part of their commercial expansion by
selling their holding of Government securities.

Recently, commercial bank holdings of government paper have been run down to an
operational minimum.  For the time being, the issue department of the Bank of
England has taken over the running, selling its holdings of Government paper to
finance commercial lending.  Again, lending can be financed without adding to
bank deposits, producing relatively orderly figures for the "money supply."

What is being achieved in reality?  A seismograph might detect a considerable
disturbance near any cemetery containing the remains of the money
disciplinarians of the 19th century, who demanded gold backing for the note
issue.  At the present rate of "progress" the note issue will within two years
be backed entirely by commercial IOUs.

Indeed, this fact suggests that a new grave is being dug.  Since the authorities
cannot buy commercial bills without limit -- unless some new institution is
invented to hold them, a kind of official money market mutual fund -- those in
charge must be presumed to hope that they are conducting the last rites of
monetary targetry.  One final set of acceptable figures, and we can turn our
attention to something else, be it the exchange rate or the monetary base, both
of which have been performing in a satisfactory way.

Control

This may seem a cynical conclusion, but it is in fact a sensible one.  It is
highly doubtful whether any workable regime can be based on the attempt to
control a broad measure of the money supply -- the attempt is something of a
British peculiarity.  It has become doubly doubtful whether it makes any sense
to control domestic sterling liquidity since exchange controls have been
abolished; private foreign currency holdings have been growing apace.

What is certain is that it cannot make sense to try at the same time to control
the broad money supply -- the domestic sterling liabilities of the banking
system -- and to refuse to subject the banking system itself to any real
constraint, and that in essence is the story of the last decade of monetary
control in the UK.

As the Treasury Committee recently pointed out, official embarrassment about
monetary policy is now so evident that the nature of the policy itself has
become a mystery.  It is a mystery which must be resolved before confidence can
revive.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1734 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Ward of the courts

SECTION: SECTION I; Men & Matters; Pg. 10

LENGTH: 290 words


"I don't believe in pulling rabbits out of a hat," said Trident Television
chairman Ward Thomas yesterday as he set the stage for his attempt to retain the
licences of the former Playboy casinos.  "You can't go along with a lot of new
names and expect the courts just to say we're all jolly good chaps."

And having already produced Peter Nievens, the former Deputy Assistant
Commissioner at Scotland Yard -- when he first met at a preview of a Yorkshire
TV programme on the police -- Thomas gave the extraordinary general meeting only
one new name to conjure with: one-time Ladbroke casino manager Gerald Kushler.

Neither Sir Gordon White nor Charles Sweeney, the men who helped set up
Trident's £14.6m deal with Playboy in return for a controversial 5 per cent of
the new operation, will play any part in its management.  "Not at all," said
Thomas firmly.

But Jack Gill, the former ACC managing director, may still be one of the names
to be plucked from Thomas's hat at a suitable moment.

Gill, who has already been advising Trident on its venture, was not present at
yesterday's meeting -- with the row over his golden handshake coming up on
Friday, one extraordinary meeting a week is probably enough for any man.

Despite some initial rumblings over the Playboy purchase, however, Thomas
yesterday saw it approved in a little over four minutes.  No voices and only two
hands were raised against it.

One of the dissenters, Ann Thomas (no relation) said she was one of Trident's
founding shareholders and had been losing confidence in its management for some
time.  She had a long list of questions to put -- but didn't.  "It seemed rather
a sexist gathering," she said, "and you feel a little cowed don't you."

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1735 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Kids' corner

SECTION: SECTION I; Men & Matters; Pg. 10

LENGTH: 258 words


One British export business that seems to be thriving is the servicing of
overseas households with a traditional nanny.

Some 18 royal families around the world and hundreds more in the international
upper-crust now take 75 per cent of the nannies placed by Sheila Davis's Bond
Street agency in London.

The last two who have just left her books did so for salaries of around £12,500
a year in the Middle East -- making them, she believes, the highest-paid members
of their profession anywhere.

Given the problems of Britain's more conventional exporters, the advice Davis
got from her husband some 14 years ago has stood her in good stead.

"My children were growing up," she says, "and I decided I wanted to go into
business.  I thought of a boutique, but my husband warned me against a
stock-carrying business and suggested I went into a service industry."

She started off with two secretarial agencies and then incorporated a nursing
agency.After a request from Bahrain for a nanny, she put an ad in the newspapers
-- and was promptly inundated with requests from and for nannies.  "Overnight I
was in the nanny business," she says.

She gave up her other activities and founded Albemarle Nannies in 1976, charging
clients 17.5 per cent of the nanny's anual salary as a hiring fee.

With 1,000 well-qualified women on its books.  Albemarle is now the largest
specialist agency of its kind in Europe.  British nannies are in a class of
their own, she says.  She had one herself and employed them for her own
children.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1736 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Woe men

SECTION: SECTION I; Men & Matters; Pg. 10

LENGTH: 220 words


In the title of this column, I fear, men may find their last nominal refuge.
For while the neatness of its alliteration -- and its all-embracing nature --
may ensure its survival, the feminist pressures to erase the very word "man"
from the English language grow.

The National Union of Journalists has now joined the movement by sending an
"Equality Style Guide" to newsmen -- sorry, reporters -- like me who persist in
writing about chairmen rather than chairpersons.

(Does Jean Marag Margaret Tyrrell really feel any the less for being listed for
the past 22 years as chairman of Sirdar, the Yorkshire wool company, in her
annual reports?)

Alexander Pope would clearly find it difficult today to publish his "Essay on
Man." For the NUJ exhorts me to wear synthetic fabrics not manmade; refer to
workforce instead of manpower; ask the time of a police officer not a policeman,
and seek the opinions of the average citizen instead of the man-in-the-street.

The guide warns reasonably against the use of businessman as a synonym for boss;
but has no alternative for postman, though post-person sounds marvellously
metaphysical.

In the end, I ask myself, however, will Westminster's ratepayers get a better
service if I write (inaccurately) about their refuse collectors instead of their
dustmen?

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1737 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Export disorder

SECTION: SECTION I; Men & Matters; Pg. 10

LENGTH: 159 words


Some distinctly disgruntled comment from the Japanese Cabinet yesterday about
the behaviour of some of that country's export salesmen, hitherto heroes of the
economic miracle.

Finance Minister Michio Watanabe complained bitterly that while the Government
was "doing all it can" to resolve its economic arguments with other countries,
the overseas staff of Japanese trading companies was not co-operating.

"They engage in drunken revelry night after night at night clubs, creating a bad
impression," Watanabe alleged.  They made no contributions to churches or
broader humanitarian issues usch as the problem of refugees.

Prime Minister Zenko Suzuki agreed that overseas staff would have to pay "full
attention" in future to ensuring they did not create "moral economic friction."

Other Ministers suggested that the companies' code of conduct might be revised
-- or, more threateningly, that expense accounts abroad might be taxed.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1738 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Asset stripping

SECTION: SECTION I; Men & Matters; Pg. 10

LENGTH: 39 words


A colleague in Aberdeen was passing a friend's house and happened to glance in
through the window. His friend was hard at work stripping the wallpaper.
"Redecorating are you?" asked my colleague.  "No, we're moving hoose."

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1739 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Tilting into trouble

BYLINE: By Lynton McLain, Transport Correspondent

SECTION: SECTION I; Pg. 11

LENGTH: 1409 words

HIGHLIGHT: Train Of The Future


BRITISH RAIL'S much vaunted 155 miles an hour advanced passenger train was to
have started running again with passengers next Monday after its disastrous
public debut last month.  But that date has now been postponed.

The further delay is "to ensure that we have the reliability we are looking
for," BR said yesterday.  The aim now is to run a "simulated passenger service"
-- normal service without the passengers -- in mid-February as a re-run of the
trials scrapped by British Rail just before Christmas.

The idea of co-ordinated project management -- common in other high-technology,
high-risk, high-investment projects -- appears to have been either absent from
the APT programme or to have become submerged as the scheme went ahead.  The APT
has also suffered from internal politics at British Rail and intermittent union
problems.

The mechanical failures of the APT are now so numerous that passengers could be
forgiven for re-naming the train the Accident-Prone Train.

The failures have included:

* The tilt mechanism, the most novel mechanical feature on the train.  This
worked well on the original experimental APT-E, now in a museum at York.  But BR
changed the design for the so-called pre-production prototype trains, only to
find in June 1979 on its first runs that it did not work as planned.  Changes
were introduced which in turn led to the need for further, previously untried,
systems.  The latest plan is to re-introduce a tilt system more akin to the
original.

* The conventional brakes have also failed on occasion.  No solution is in sight
to this problem.

* Last month the brakes came on without warning because moisture in the
compressed air froze.

* A so far unexplained power cut to one of the main drive motors last month
stopped the tilt mechanism and swiftly brought the carriages upright with
spectacular results.  Cups, plates and food defied gravity, flew through the air
and caused dismay among bewildered, fare-paying passengers.

In view of all these problems it is still not clear why British Rail chose to
accept fares from passengers.  The train is still clearly showing the symptoms
of under-development which have become the main hallmark of the whole project.
For the most recent problems have all occurred after the train has been tested
and run for over 100,000 miles, almost half-way to the moon.

The APT had its origins in the 1960s when British Rail first had the idea of
using tilting technology for its high-speed trains of the future.

Since then £37.3m has been spent by BR on the APT project, £8.2m on the research
and experimental stage and £29.1m on the prototype stage to date.  This amounts
to about £2.66m a year which last year represented just 1.19 per cent of BR's
total investment of £223m.  Since the pre-Christmas trials, the Transport
Department has revised the total so far spent by BR on the APT, to a new total
to the end of 1981 of £43.4m.

By contrast French Railways have spent £800m on the new TGV 160 miles an hour
passenger train project.  This is based on new, double track running 257 miles
from Paris to Lyon.  The final section of this will open in 1983, when the APT
will probably have just finished its 12 months of passenger trials.

The tilt system means that the APT should be able to take corners between 20 and
40 per cent faster than conventional trains.  It also needs only a third of the
power per seat of the TGV; its cost per seat is £55,250, just over half the cost
of a seat on the TGV and at £3.1m for a complete APT, the capital cost of a
train set is £1m less than for a TGV.  These advantages stem in large part from
the novel use of lightweight extruded aluminium on the pre-production prototype
APTs in a technique developed by BR and Alusuisse for the APT.

Back in 1967, when BR first discussed the tilt, Britain was already in danger of
getting left behind by other countries which already had high speed trains.  The
Shinkansen high speed "Bullet" train had been operating in Japan for almost
three years.  Two years later the government authorised the APT-E.

This "served its purpose," It proved that the novel aspects of the train could
work.  There was a new suspension to overcome the problem that high speed
coaches or wagons can literally shake themselves off the track and there were
new brakes to cope with the high speeds.  There was also the tilt and the
aluminium body.

But this experimental train was never intended to carry passengers and was
altogether a different animal from the electric APTs now struggling to enter
fault-free commercial service.  Nor was it ever used by BR as a prototype to
iron-out design and production problems.  British Rail Engineering at Derby,
which built the train, was expected to use the experience to learn from scratch
the expensive techniques of "aircraft technology."

For example close riveting techniques, designed for strength and smoothness on
aircraft, were used on the APT-E by workers more used to welding hefty steel
structures to greater tolerances than were acceptable with aerospace techniques.
But these techniques, so expensive to BR to adopt, were used for just one train.

Meanwhile the abundance of new ideas in the experimental APT caused delays with
the test programme and stretched the resources of BR's research and engineering
workers.  The APT-E did not make its first run until five years later in July
1972.

Almost immediately the rail unions "blacked" the train.  The unions wanted two
driving seats; British Rail wanted one seat.  The unions won, but the dispute
cost BR a full year in its test programme.

But the APT-P (for pre-production prototype) was to be a very different train
from the experimental version.  Gone was the advanced aerospace construction
technique and in its place the search started for the "real novelty" of using
very wide, very long aluminium extrusions automatically welded together, a
technique never before used by BR.  Dr David Boocock, the Inter-City design
engineer accepts that this production process started off as "completely
unproven."

Under the burden of a completely new production process, a new power source --
electric instead of gas turbine -- and design changes with the tilt system,
British Rail found it impossible to meet its own targets.  The first complete
train was to have been delivered by BR Engineering three years after the
go-ahead, by mid-1977.  Instead, only the first power car was delivered.

BR now blames industrial disputes, incomes policy and "people using APT as a
lever" for their own ends.The first passenger coaches were started in June 1976,
but were delivered a year later than planned in June 1978.

This was five years after BR had taken the decision to build a prototype high
speed tilting train, but this had not run, not even slowly.  The first complete
APT left Derby works for the Glasgow APT depot in February 1979, but four months
was to pass before the train started its first experimental run.  This was 12
years after BR had first thought of building a tilting train.

The failure to evolve production techniques for the APT led directly to the
de-railment of the APT in April last year when an axle came apart.  The bolts on
the axle had not been tightened properly.

By September last year the train was back on the rails, only to find that two
more problems had emerged.  The conventional brakes on the APT dragged while the
train operated and BR was also concerned at what might happen if the tilt
mechanism failed.  A tilt failure mechanism was installed about 18 months after
the first test runs.

Dr Boocock insists that most of the APT's problems have not concerned the tilt
mechanism or any fundamental problems.  They have been more to do with
"nuts-and-bolts" problems.

This type of problem is likely to continue.  Further design changes, some of
them substantial beyond the current resources of British Rail, and subsequent
testing, will be made to the full production APTs.

BR wants the Government to give the go-ahead for a £286m programme for a fleet
of 60 APTs and associated depot installations.  But given BRs record in managing
the current £43.4m programme, the 15 years it took from conception to last
month's unsuccessful passenger runs, and BR's own admissions of its inability to
provide the resources needed, the Government will take a hard look at BR's
investment submission.

LANGUAGE: ENGLISH

GRAPHIC: Illustration, no caption

                   Copyright 1982 The Financial Times Limited


                             1740 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Why oil prices must remain high

BYLINE: Iain Begg, Francis Cripps and Terry Ward

SECTION: SECTION I; The World Recession; Pg. 11

LENGTH: 1013 words

HIGHLIGHT: Iain Begg, Francis Cripps and Terry Ward of Cambridge University
argue that governments have adopted the wrong policies to cure the recession.


BRITAIN is not alone in suffering the effects of economic recession.  Since
1973, growth in all member-countries of the European Community has slowed
considerably and unemployment problems have become acute almost everywhere.
Over 8 per cent of the EEC labour force is now unemployed and by 1985 the figure
could well reach 12 per cent if present policies continue.

The recession is widely blamed on internal weaknesses, such as persistent
inflation, faulty government policies, low productivity growth and inadequate
structural change.  It is to remedy these supposed problems that most member
governments are at present attempting to cut back public spending and borrowing.
The dual aim is to curb inflation by financial restraint and to improve the
international competitiveness of European industries by giving freer rein to
market forces.

Our study of the European Community's economic problems and prospects * leads us
to question this diagnosis and to reject as wholly inappropriate the policy
prescriptions which arise from it.

In the first place, the slow-down in economic growth was too sudden and uniform
across EEC countries to have been plausibly caused by inflation or supply-side
rigidities.  Second, it is hard to say that Europe's industries are in general
uncompetitive when they still dominate world markets and when import penetration
from the rest of the world is still negligible.

The record trade deficits experienced by all EEC countries except the UK are due
largely to depressed markets in oil-importing countries all over the world
rather than to a failure of European industries to hold on to market shares.

Third, the internal problems identified as causes of the recession -- the fall
in productivity growth and the deterioration of government finances -- are in
reality largely consequences.

In our view, the recession was initiated and has been sustained by external
rather than internal forces in the form of a world-wide scarcity of energy.
This has held back economic growth in Europe and the rest of the world through
increases in the price of oil.  These have led governments in oil-importing
countries to deflate domestic demand, so preventing any physical energy
constraint materialising.  The present oil glut -- and the downward drift in
prices -- is entirely due to the low level of economic activity which these
policies have caused and would quickly disappear if growth were resumed.

Although Opec is a marginal supplier of energy to the non-Communist world, it is
Opec production which in the past has expanded and provided the extra fuel
needed for world economic growth.  Between 1965 and 1973 Middle East oil
production grew by 13 per cent a year to enable the world economy to grow by 5
per cent a year -- a two and a half fold increase in production in just eight
years

If economic growth had continued at its former rate, and given the changes in
energy saving and energy supply else where which actually occurred, Middle East
oil exports would have had to double again by 1980 and again, no doubt, well
before 1990.  This trend had to stop sooner or later.

So far, Opec has twice called a halt and put its price up -- the timing
influenced as much by political events as by economic considerations.  The
price, however, has still not proved high enough to stimulate energy saving and
expansion of alternative sources of supply at the rate required to permit world
economic growth at its former rate, though it has been high enough to cause
severe financial hardship for many low-income countries.

Although energy supply and the pattern of use are not entirely unresponsive to
the world oil price, the response so far has been very slow in relation to need,
despite huge price increases since 1974, Progress is being made in developing
new sources of supply and some countries, notably Japan, have achieved
significant energy saving.  But exhaustion of easily accessible energy sources
in or near the main consuming areas continuously diminishes the total supply
available.

This is the main problem which the EEC must help to resolve if its own recession
is to be brought to an end.  Europe as a whole is too large in the world economy
to evade the global constraint by out-competing everyone else and buying up all
the energy it needs.  There are too many other energy-hungry parts of the world
which, by fair means or foul, have to provide for their own survival.  Even if
Europe's industries were the most efficient in the world, it would still not
guarantee full economic recovery.  And to the extent that Europe can ease its
problems by this means, it is only at the expense of condemning other parts of
the world to continued recession and, in many cases, to worsening poverty.

The policies necessary at the international level to generate recovery can be
stated quite simply.  They are: the acceptance of a high world oil price as the
only effective means of maintaining continuous pressure for energy saving and
the development of new supplies; the willingness to borrow on a large scale to
finance the counterpart deficits to Opec surpluses; and greatly increased aid
and/or trade concessions to low income countries

It is much harder to envisage agreement being reached on these policies at the
EEC, or world, level within the time-scale required materially to affect
economic developments up to 1985 when individual countries vary so much in their
vulnerability to oil price increases and their borrowing potential.

As yet, the collective gain from a global effort to overcome energy scarcity has
hardly been recognised.  Governments are still preoccupied with curbing
inflation through restrictive fiscal and monetary policies which will prolong
recession and, by holding down the world price of oil, make the underlying
problem more intractable.

This piece is based on the latest Cambridge Economic Policy Review (Vol. 7, No.
2) to be published on January 11.  It can be obtained from Gower Press, Gower
House, Croft Road, Aldershot, Hampshire, GU11 3HR.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1741 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Immunity clause in Lloyd's Bill

BYLINE: Peter Green, Lloyd's, Lime Street, EC3

SECTION: SECTION I; Letters to the Editor; Pg. 11

LENGTH: 321 words


From the Chairman, Lloyd's

Sir, -- I read with interest your leading article of January 5 entitled "Tying
up the Lloyd's Bill." You quite rightly point to the importance of the Bill, the
close examination and wide debate which it has already received, and the utmost
importance of the legislation being enacted as soon as possible.

May I be allowed to deal with two points raised in your leader.  The first is
your suggestion that an amendment might be necessary to ensure that the Society
and Council would not be protected by the provisions for restraint on suit for
civil damages if they acted "above and beyond" the duties imposed on them by the
new Act and its byelaws.  In fact such an amendment is unnecessary since the
current drafting of Clause 11 includes just such a limitation; Sub-Clause (3)
makes it clear that restraint on suit only applies when the Society is
exercising a power or duty imposed by the Act; there is an absolute exclusion of
any act done in bad faith; finally, the general legal right to challenge any
action of the Council as "ultra vires" remains.  This right is entirely
unaffected by Clause 11.

My second brief point is to emphasise that Lloyd's seeks the inclusion of a
measure of restraint upon suit in the Bill, not only to safeguard the holder of
a Lloyd's policy, but also to safeguard the interests of the members of Lloyd's
by ensuring that they benefit from a properly self-regulated market.  For this
reason I am unclear as to why you think that the Clause creates "a tension . . .
between the interests of those that seek insurance from the market and the
members who put up the capital to allow the market to function." It is my
profoundly held view that Clause 11 is needed for the general interests of
Lloyd's itself -- that indeed that can be its only justification -- and that the
community of Lloyd's will be better off with the Clause than without it.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1742 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

EEC regional fund grants

BYLINE: Andrew Pearce, 30, Grange Road, West Kirby, Wirral, Merseyside.

SECTION: SECTION I; Letters to the Editor; Pg. 11

LENGTH: 127 words


From Mr A. Pearce, MEP

Sir, -- EEC regional fund grants are supposed to be additional to British
expenditure and, therefore, readily identifiable as such.  Yet the money is, so
far as I can see, received from Brussels, put into the national kitty and
disappears from view.

This breach of the principle of additionality is particularly frustrating to
those who support Britain's EEC membership because the public, which hears so
much about what the UK puts into the EEC, is denied the chance to hear what we
get out of it, especially in areas like Merseyside which do quite well out of
the fund.

Let us hope that the British Government will change this policy (which it
inherited from Labour) and "come clean" on its handling of this money.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1743 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Secure form of payment

BYLINE: L. Scruton, 27, Hill Street, W1.

SECTION: SECTION I; Letters to the Editor; Pg. 11

LENGTH: 148 words


From the Group Credit Manager, Cope Allman International

Sir, -- Mr John Brodrick (December 15) talks of "secure payment . . . to replace
the letter of credit," yet we have in a confirmed and irrevocable letter of
credit the most secure form of payment one could devise.  It guarantees that the
banks, in their role as agents to your customer, will pay you. What it requires
in return is great care with the presentation of shipping documents that go with
the letter of credit, but that is no more than one would expect when a bank is
irrevocably committed to paying you simply by accepting a few sheets of paper on
which it must rely as collateral.

A letter of credit without confirmation and obligation has never guaranteed
payment from banks or customers.  Once it is confirmed and irrevocable, however,
then you, the seller, are safe and payment has to be prompt.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1744 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Flouting of trade agreements

BYLINE: D. A. de Saxe, Milfoil House, Woodpecker Way, Mayford, Woking, Surrey.

SECTION: SECTION I; Letters to the Editor; Pg. 11

LENGTH: 269 words


From Mr D. de Saxe

Sir, -- In his article of December 16 your Far East editor raises an issue of
the utmost significance.  Many countries which do not pursue the concept of free
trade impose blocking regulations, weaving an intricate web of red tape so as to
inhibit, if not absolutely to prohibit, the importation of goods competing with
those produced domestically. Unfortunately, there exist certain major trading
nations, signatories to GATT, whose authorities behave in the same way,
deliberately ignoring the concept of trade reciprocity.  They also impose a
network of absurd but carefully phrased rules and specifications which produce
the effect of almost total discrimination against legitimate imports.

Such flouting of trade agreements is widely practised by Japan and is well
illustrated by your Far East editor.  An effective method by which to bring it
to an end is indicated by Italy's sensible attitude to the importation of
Japanese motor-vehicles.  By the imposition of similar blocking tactics, all EEC
countries should refuse to import any goods whatsoever of Japanese origin until
such time as the Japanese are brought not only to understand their two-way trade
obligations but also to put them into practice.

The effect of such action on our economies and manufacturing employment levels
would be remarkable.

One becomes tired of the glib response to a suggestion such as I have outlined
that import protectionism, however disguised, would lead in the long run to
reduced export opportunities.  When we enjoy no exports to speak of in Japan,
what have we to lose?

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1745 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Success of financial futures

BYLINE: Michael Spencer, 135, Portland Road, W11.

SECTION: SECTION I; Letters to the Editor; Pg. 11

LENGTH: 335 words


From Mr M. Spencer

Sir, -- David Lascelles' Lombard column, "Gambling on the futures market"
(December 17) deserves a reply.

Interest rates futures, new fangled and fashionable as Mr Lascelles accurately
describes them, do not exist without a reason.  Ten years ago there were no
interest rate futures markets -- there was not much need given the relative
stability of interest rates.  Today, on a reasonably active day, the Chicago
markets will turn over $40bn worth of these instruments.  The reason is pretty
obvious to anyone who looks at the record of interest rates over the past two
years -- unprecedented swings have taken place in extraordinarily short periods.
These volatile movements in rates have made long term financing either
unobtainable or exorbitantly expensive to the majority of borrowers.  Short or
medium term financing has now become the rule and borrowers are consequently
exposed to considerable fluctuations in the cost of their money.  What is true
for borrowers is, similarly, also true for lenders.

Virtually every bank, corporation, Government and many individuals have interest
rate exposure.  Futures offer the opportunity to offset all or part of this risk
both easily and cheaply (in transaction cost terms).Conversely, those who are
less risk averse, can speculate on anticipated rate changes.

Like any financial innovation, interest rate futures have come in for their
share of criticism, usually from those who do not really understand them.  There
is however, no shortage of bankers and corporate treasurers who have found
futures extremely useful and versatile.  Certainly some of the new contracts
proposed by some exchanges may seem a little esoteric but, like any market,
their success will ultimately depend on whether there is genuine need and hence
usage.  To date financial futures have enjoyed a most remarkable success -- they
have grown from nothing to become one of the most heavily traded markets in the
world in roughly five years.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1746 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Direct broadcasting by satellite

BYLINE: D. D. Grant, Queen Anne's Gate, SW1.

SECTION: SECTION I; Letters to the Editor; Pg. 11

LENGTH: 192 words


From the Director of Information, Home Office

Sir, -- Mr W. K. Stevenson (December 18) did scant justice to the issues to
which be addressed himself or to the problems of radio frequency management.  I
could not do justice to these matters in the compass of this letter, but his
principal assertion, that the Home Office intends virtually to block satellite
broadcasting in the foreseeable future, is one which at least I might be
permitted to correct.

Last may the Home Office published the report of its study of direct
broadcasting by satellite (DBS).  In his foreword to the report the Home
Secretary said that the Government believed that a positive approach to the
challenge which DBS presents was the right one, and that it was prepared to give
serious consideration to a modest early start.  Comments on the report were
invited; many have been received and are being considered; and, in a recent
debate in the House of Lords, Lord Belstead indicated that the Home Secretary
hoped to be in a position to make an announcement about DBS in the New Year.

In the Circumstances, Mr Stevenson's strictures hardly seem justified.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1747 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Arabs call for action against U.S.

BYLINE: BY OUR FOREIGN STAFF

SECTION: SECTION I; Pg. 12

LENGTH: 443 words

HIGHLIGHT: WASHINGTON TO VETO SANCTIONS ON ISRAEL


ARAB CALLS for direct action against the U.S. mounted yesterday as it became
clear that Washington would veto a United Nations Security Council resolution
calling for sanctions against Israel for its annexation of Syria's Golan
Heights.

The 15 members of the Security Council have begun informal consultations on the
"appropriate measures" it said should be taken if Israel did not abide by the
December 17 resolution demanding that it should rescind its annexation decision.

The deadline set by the Security Council passed yesterday with Israel confident
that the U.S. would block a resolution calling for sanctions, which had been
proposed by Syria.

Syrian newspapers said a U.S. veto would seriously damage its relations with
Arab countries.  By going to the Security Council, Syria was giving the
international community "another chance to look closely at Israel's long record
of aggression."

In Lebanon more extreme editorials described a possible U.S. veto as "the
bullet" which would kill Washington's relations with the Arabs.

The Saudi Arabian newspaper, Al-Riyadh, said the Americans and the international
community were faced with two choices: "Either to stand on the side of justice
and peace, or snuff out any moderate voice calling for a peaceful solution; a
matter which would turn the entire Arab nation to resort to other means to
recover its rights."

This theme was taken up in Kuwait where leading newspapers called openly for
sanctions against the U.S. if it used its UN veto.  The newspapers warned Syria
against being seduced by U.S. arguments that its actions were dictated by a
desire to ensure that Israel withdrew from the remaining third of Sinai next
April.

In Israel there was little anxiety over the outcome of the Security Council
debate.  Reassured by Washington that it would not support a vote for sanctions,
the Israelis emphasised that they could live with a resolution merely condemning
the Golan annexation.

A Foreign Ministry spokesman said yesterday that such condemnation would come
solely as the result of political alignments and had "no connection with what
Israel does, or does not do." It had become a routine matter for Israel to be
condemned by the UN, he said.

American diplomats in Tel Aviv said that despite the Reagan administration's
anger at the Israeli action it was wary of putting too much pressure on Prime
Minister Menahem Begin in case he responded by halting the withdrawal from
Sinai.

Reginald Dale writes from Washington: The White House said yesterday that
Egypt's President Hosni Mubarak would visit President Ronald Reagan for the
first time on February 3.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1748 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Ghana to examine foreign holdings

BYLINE: By Quentin Peel

SECTION: SECTION I; Pg. 12

LENGTH: 436 words


FOREIGN investments in Ghana are to be "re-examined" by the country's
Provisional National Defence Council in the wake of the New Year's Eve military
coup, Flight Lt Jerry Rawlings, the coup leader, announced yesterday.

Life in the capital, Accra, is returning to normal, with banks reopening
yesterday after the accounts of more than 200 politicians and officials in the
deposed government of Dr Hilla Limann had been frozen.

As first eye-witness accounts of the events surrounding the coup emerged from
business sources, diplomats, and Ghanaians who have fled to neighbouring Lome,
Flight Lt Rawlings appeared to be successfully consolidating his position in the
capital.

A formal proclamation establishing the new regime is expected to be published
soon, although membership of the Provisional National Defence Council is still
unknown.

Heads of the diplomatic missions in Accra were yesterday summoned to a meeting
with the newly reinstated Chief of the Defence Staff, Brig Nunoo Monsah, and
Brig Arnold Quainoo, the army commander - although neither are believed to be
members of the PNDC.

In a speech broadcast by the radio the first installation taken over by the coup
leaders Flight Lt Rawlings said the PNDC would take a fresh look at foreign
investment in Ghana "with a view to maintaining the national sovereignty and
interests" of the country.  He said that instead of putting faith in foreign
investment, Ghana should encourage its own industrialists.

He also announced that export of the cocoa and coffee crops, much of which has
been stranded by the dislocation of the country's road network for up to two
years, was the "immediate task" of the new government.

Meanwhile, Ghana state radio announced that Mr Nana Okutwer Bekoe, chairman of
the now-proscribed Peoples' National Party, had been detained at a border post,
following Monday's arrest of the former President, Dr Limann, outside Accra.

The disorgansied and haphazard nature of the December 31 coup has been
emphasised by first eye-witness accounts.  According to one report, the coup was
started by a handful of disgruntled former members of the Recce Regiment.

After unsuccessfully urging members of the regiment to join them, they shot dead
the second in command, and seized two vehicles.  They then took control of the
armoury at the nearby Fifth Battalion, but were equally unsuccesful in winning
active support from the men.

It was only when they reached the air force base, and announced that they were
backed by Flight Lt Rawlings, that they won some supporters, according to this
account.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1749 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

The new improved money figures

SECTION: SECTION I; The Lex Column; Pg. 12

LENGTH: 347 words


Having been over-optimistic about the money figures for banking [TEXT ILLEGIBLE]
November, the gilt-edged market was unnecessarily gloomy about the prospects for
the short (only three weeks) and often unrepresentative December banking month.
The rise in sterling M3 turns out to have been a perfectly acceptable 1/4 per
cent, while the clearing banks' advances were unchanged on a seasonally adjusted
basis.

But the clearing banks' experience is not a fair reflection of private sector
credit demand.  Total bank lending to the private sector seems to have been
roughly £1 1/4bn - half the record November level but still high - of which
£600m is accounted for by an increase in the Bank of England's holdings of
commercial bills.  Some of this must reflect the payment of an extra £1bn of tax
held up by the civil service strike, and equivalent in itself to around 1 1/4
per cent of the money stock.

With bank lending continuing at this rate it seems unlikely that the December
figures will prompt any relaxation of official policy.  Anyone who is anxious
for positive encouragement should look at the annualised figures for monetary
growth which are favourably influenced by the inclusion of a number of deposit
takers, ranging from the Trustee Savings Banks to the Assemblies of God Property
Trust, whose balance sheets have been growing less rapidly overall than those of
the mortgage-hungry clearers.

So Sterling M3, up 17.7 per cent annualised on the old basis in the nine months
to November, has slowed to a 15 1/2 per cent growth rate on the new series in
the ten months to December.  An application from Banque Stagnante to join the
"monetary sector" is believed to be under consideration at the highest level.

The gilt-edged market managed a feeble rally on the figures, so that losses on
the day were reduced to half a point.  But the fear of an upward twist in U.S.
interest rates is a more powerful influence than better-behaved British money
figures and a firm pound, and yields on medium-dated stocks are back to a wary
16 1/2 per cent.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1750 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

RTZ/Ward

SECTION: SECTION I; The Lex Column; Pg. 12

LENGTH: 262 words


Thomas W. Ward is not renowned for the speed with which it produces figures, so
yesterday's detailed forecast for the full year to September 1982 suggests an
element of panic.  Ward failed to produce a full year forecast at any stage
during last year's bid for Tunnel and its 1981 figures, hastened by the RTZ
offer, have been in only a month.

The forecast is certainly a comprehensive and sturdily argued document.  Precise
figures are given for all its subsidiary businesses, an awesome task in the case
of engineering or vehicle distribution.  Ward admittedly has some latitude since
£1m has been allocated as a "general contingency" and the impressive list of 21
assumptions covers almost every eventuality short of nuclear fall-out.

RTZ has been doing the rounds of institutional shareholders and Ward was
obviously worried that a higher offer would win immediate acceptance.  So it has
put all its cards on the table in an apparent attempt to flush out an even
higher price.  Ward shares responded yesterday with a jump of 8p to 218p, where
they stand 28p above the existing RTZ cash offer.

The latest document places considerably less emphasis on the unsuitability of
RTZ as a bidder and more on the inadequacy of its offer.  Ward will receive no
help from Tunnel in defending itself, and it is having to tie itself in knots to
explain why its Tunnel stake is worth a lot more per share than it was prepared
to bid for Tunnel last year.  Ward now appears to be directing its efforts
towards obtaining the best possible price for its shareholders.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1751 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Oil sector

SECTION: SECTION I; The Lex Column; Pg. 12

LENGTH: 242 words


It is now more than two months since the Opec meeting at which the Saudis
regained control of the cartel and re-established a unified oil pricing
structure.  Demand has proved extremely weak and there seems to have been little
reduction in the surplus of stocks, judging by the falling spot prices in
Rotterdam and the re-emergence of petrol price wars. On the stock market the oil
sector, which had enjoyed something of a run in the autumn ahead of the meeting,
has subsequently lost all its gains, falling more than 6 per cent relative to
the All-Share.  A further twist has been added this week with Venezuela
introducing an average $1/2 a barrel cut in heavy crude oil prices on Monday and
Mexico slashing its very heavy crude price by $2 yesterday to $26.50.

But these cuts do not mean that the oil price is about to go into a tail-spin.
Two things seem to be happening.  The process of adjusting price differentials
in the new circumstances is taking some time.  Meanwhile, demand for the heavier
crudes - used mainly in power generation - is particularly slack due to coal and
nuclear substitution and the recession.  So far it looks as if the Saudis can
cut production enough to bring the overall market into balance - eventually.
But whereas until recently this had been expected in the spring, now it looks as
if conditions will remain slack until the second half.

So the outlook for the oil majors is not very encouraging.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1752 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Renewed strike threat at Ford UK plants

BYLINE: BY IVO DAWNAY, LABOUR STAFF, IN LONDON

SECTION: SECTION I; Pg. 12

LENGTH: 482 words


CRUCIAL mass meetings take place today at Ford's two largest UK plants amid
growing concern among union leaders that workers may reject their
recommendations to accept the company's pay and conditions package.

Yesterday workers at a number of smaller plants threw out the offer, which
includes a 7.4 per cent basic pay rise, higher pensions and a 39-hour week.

At Swansea, Wales, 1,660 workers in the axle and transmission plant want on
strike after a mass meeting voted by almost two to one to reject the offer.

At Bridgend, also in Wales, 1,600 workers gave notice of strike action from
Monday after throwing out the package.

Shop stewards at Halewood, near Liverpool, where 10,000 assembly and body plant
workers are already on strike, yesterday voted unanimously to defy their
negotiators and recommend rejection, and 750 workers at the car kit plant near
Dagenham, near London, ignored their union officials and voted for a strike.

Ford said last night that it was also expecting a majority for rejection at the
1,200-strong Belfast plant.

So far the company estimates that acceptances yesterday at five other plants
indicate a three-to-one majority in favour of the offer among the plants that
have voted, representing about 20,000 of the 54,000 workforce.

Some union leaders admitted last night that initial returns indicated that the
trend was running against the negotiators' recommendation that the offer be
accepted.

Mr Ron Todd, chief negotiator for Ford's 13 unions, said that he was surprised
by the Halewood workers decision to proceed with strike action after the
national committee had issued instructions to continue normal working.

He added that the shop stewards have an obligation to put the national
recommendation to the Halewood meeting.

"If there is a majority in favour of rejection, then the national committee will
meet again to decide on a course of action," Mr Todd said.

The executive of the Amalgamated Union of Engineering Workers (AUEW), Ford's
second largest union, yesterday voted unanimously to recommend that its members
accept the company's offer.

Mr Terry Duffy, the AUEW president, said he felt sure his members would accept,
and urged them to work normally.

"We feel we can trust the negotiators," he said.  "They have decided that this
is the best possible deal in the circumstances."

The AUEW executive's decision is tantamount to warning the union's members that
they may not receive £12 ($23) a week strike pay.

But Mr Moss Evans, general secretary of the Transport and General Workers Union
- the largest at Ford - said last night that the union had ample funds to
sustain a long strike.

The TGWU had set aside £2m ($3.8m) on short-term deposit which would be
sufficient to pay its 40,000 Ford workers £12 a week for four weeks.  A further
£16m could also be made available, he said.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1753 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

BP to close Dunkirk refinery

BYLINE: By Ray Dafter in London

SECTION: SECTION I; Pg. 12

LENGTH: 273 words


BRITISH PETROLEUM is to close its Dunkirk oil refinery and lay off some 900
French employees as a result of the continuing recession in the European oil
products market.

The move - affecting the group's 79 per cent-owned subsidiary Societe Francaise
des Petroles BP - is the latest in a series of measures aimed at reducing BP's
Western European refinery capacity by about 25 per cent in the 1981-82 period.

The large Dunkirk refinery, with an annual capacity of 4.4m tonnes, is to be
shut during the coming year, although BP intends to keep open its lubricants and
bitumen plants on the same site.  Some 400 jobs are expected to be lost at the
refinery.

BP said that a further 500 of its 4,700 French labour force would be affected by
rationalisation measures in its supply, marketing and Paris headquarters
operations.

The Dunkirk decision means that BP has now virtually met its closure objectives.
In the past year it has announced that almost 23m tonnes of its original 100m
tonnes a year Europen capacity is to be closed.

Six refineries have borne the brunt of these measures: Dunkirk (4.4m tonnes);
Antwerp, Belgium (1.3m tonnes); Isle of Grain, UK (10.4m tonnes); Vohburg-Eriag,
West Germany (2.4m tonnes); Dinslaken, West Germany (2.6m tonnes), and Speyer,
West Germany (1.8m tonnes).

BP's actions are in line with similar measures being taken by other major
refinery companies.  A few months ago industry analysts were suggesting that
Western European refiners would have to close at least 30 per cent of their
capacity - the equivalent of 300m tonnes a year in order to balance supply and
demand.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1754 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Italian inquiry into P-2 affair to probe 'link' with publishers

BYLINE: BY RUPERT CORNWELL IN ROME

SECTION: SECTION I; Pg. 12

LENGTH: 458 words


THE Italian parliament's newly formed committee of inquiry into the P-2 affair
is plunging in at the deep end.  Its first hearing, scheduled today, is into the
links between the ultra-secret freemasons' lodge and the troubled
Rizzoli-Corriere della Sera publishing group.

The circumstances of the hearing are as bizarre as any in the protracted battle
for control of the Corriere, Italy's leading daily paper.  Once again, however,
they are threatening to increase the political tensions already menacing the
five-party coalition government of Sig Giovanni Spadolini.

Assuming that procedural wrangling can be overcome, the star witness today will
be Sig Bruno Tasan Din, managing director of Rizzoli and arguably the central
figure in the intricate negotiations over the Corriere's future.

The committee session was called after weekend revelations of tape recordings of
telephone conversations late last year between Sig Tassan Din, who controls a
vital 10.2 per cent of the group, and Sig Licio Gelli, the fugitive grandmaster
of P-2, now dissolved by law.

In the taps, Sig Gelli is said to have put pressure on Sig Iassan Din, himself a
reported member of P-2, to agree to plans, favoured by the Socialist and
Christian Democrat parties, for the sale of Rizzoli-Corriere Della Serra to Sig
Guiseppe Cabassi, a Milanese Businessman.

Sig Cabassi, however, has added to the general confusion by denying ever having
negotiated with Sig Tassan Din.  He also says he had nothing to do with Sig
Gelli.  He had dealt only with Sig Angelo Rizzoli, president of the group, who
directly holds 40 per cent of its equity, he said.

The latest developments are being generally seen as further proof of the
determination of Sig Tassan Din, already embroiled in argument with employees of
Rizzoli over a controversial cutback plan, to maintain his position at all
costs.

But the new entanglement of Rizzoli and P-2 is being closely watched by all
politicians here.  The P-2 affair toppled the previous government of Sig Arnaldo
Forlani when it became public last May.

Five months later, Sig Spadolini's administration was in jeopardy over
opposition by the Socialists, members of his coalition, to proposals for
Corriere to be sold to a group of prominent businessmen led by the Republican
Party president, Sig Bruno Visentini.

That plan has now been dropped, but the Socialists are keeping up the pressure
on the Government and talk openly of new elections, if need be, to clear the
political air.

The Prime Minister, however, declared yesterday that he would resign only if
defeated in parliament.  He said it would be a major error to open a crisis
before the 1982 Finance Bill had completed its parliamentary passage.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1755 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Thatcher to face budget challenge

BYLINE: BY PETER RIDDELL, POLITICAL EDITOR, IN LONDON

SECTION: SECTION I; Pg. 12

LENGTH: 390 words


THE GOVERNMENT of Mrs Margaret Thatcher is likely to face a challenge from
ministers pressing for an expansionary package worth £2bn-3bn ($5.8bn) next
month when the British Cabinet meets to discuss the budget for the coming
financial year.

The Cabinet as a whole will be discussing the budget following protests by
ministers last year, when large tax increases were unveiled by Sir Geoffrey
Howe, the Chancellor of the Exchequer, without prior or wider consultation.

The so-called "wet" ministers - those who have argued for more expansionary and
less socially divisive policies within the ruling Conservative Party - intend to
use the forthcoming Cabinet debate to press their own case.  Along with
like-minded Tory backbenchers, this group of ministers will be calling for a
change in Government direction in the spring budget.

These ministers have apparently not yet coordinated their approach, but their
preliminary thinking seems to focus on a £2bn to £3bn package.  The scale is
partly symbolic, since the ministers do not want to associate themselves too
closely with the £5bn package put forward by Sir Ian Gilmour - the sacked
Cabinet minister and a leading "wet" - yet they do want a clear move away from
present policies.

Their priorities seem to be for a cut in the employers' National Insurance
(social security) surcharge, for increased public sector capital investment, and
possibly for some action to ease industry's energy costs.  The "wets" generally
believe that these measures should come ahead of any reduction in the basic rate
of income tax.

There appears to be general agreement among the "wets" and within the Treasury
that the Government cannot again fail to raise income tax threshold allowances
in line with inflation.

There is also strong Tory back-bench and some ministerial pressure to drop the
proposals for savings on unemployment and shortterm supplementary benefits.
This now seems highly likely.

Treasury ministers are likely to stress the need to contain public sector
borrowing if economic recovery is to be sustained and if interest rates are to
be cut.  While these factors will limit the room for manoeuvre, the Treasury's
projections in its December statement indicated that there might be some scope
for tax cuts, though not on the scale desired by the "wets."

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1756 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Pacific Holding offers $376m for Cannon Mills

BYLINE: BY DAVID LASCELLES IN NEW YORK

SECTION: SECTION II; Companies and Markets; Pg. 13

LENGTH: 312 words


CANNON MILLS, one of the largest textile companies in the U.S., yesterday
received an unsolicited takeover bid worth $376m from a Los Angeles investment
company, Pacific Holding Corporation.

This is the second unsolicited bid Cannon has received in the past 12 months.
Last January, Mr Harold Geneen, the former chairman of ITT, and a group of
private investors made a similar bid which was rejected.  The bid also put a
value of $376m on the company.

The offer from Pacific Holding is $40 for each of Cannon's 9.4m shares,
conditional on a minimum of 62 per cent of the shares being tendered, as well as
approval from the board of directors and certain large shareholders.

Cannon's board said yesterday that it would refer the bid to its financial
advisers and would not take a position until it had received their report.

Cannon Mills, based in North Carolina, is the larget U.S. manufacturer of towels
and sheets.  Sales in 1980, the last full year for which figures are available,
were $660m and profits $21m.  Although the textile industry is highly
competitive and fraught with problems, Cannon has undergone a massive shake-up
which is said to have improved its business prospects.  As a takeover target, it
is also attractive because it has a strong balance sheet and $60m in cash.

The company is 37 per cent controlled by the Cannon Family and finds about 80
per cent of its operating profits from the sale of home textile products such as
towels, sheets, bedspreads and drapes.  Consumer textile products are sold
nationally through a wholly-owned subsidiary, Cannon Mills, to depart ment and
chain stores as well as through other retail outlets.

Profits fell sharply in 1980 as the U.S. recession bit into consumer spending
but the 1981 fiscal year, which ended on December 31, showed signs of an upturn
in both sales and earnings.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1757 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

World Bank on target for borrowing

BYLINE: By Peter Montagnon in London

SECTION: SECTION II; Companies and Markets; Pg. 13

LENGTH: 292 words


THE WORLD BANK raised a total of $4.16bn on international capital markets during
the first half of its current fiscal year, putting it comfortably on target for
the full year's borrowing programme of $8.2bn.

Bank officials in Washington said yesterday that the average cost of the new
borrowings, weighted by amount and maturity, was 11.33 per cent, compared with
an average cost of 9.1 per cent on new borrowings raised in the whole of the
1980-81 fiscal year.

The bank is confident that it will be able to meet this year's borrowing needs,
they said.  The current year's programme is the largest in the bank's history -
borrowings raised in the last fiscal year which ended on June 30 amounted to
only $5.07bn.

For next year, the bank plans a further increase in its borrowing.  It has
already said its requirements in 1982-83 will be more than $9bn and in 1983-84
more than $10bn, and it continues to diversify its source of funds.

In the past six months it has borrowed Norwegian Kroner for the first time and
floated its first issue in the Kuwaiti dinar market.

But one potential source of funds that has still not been tapped is the
floating-rate bank credit market.  Although bank officials said last September
that such borrowing was under consideration, it is understood that slow progress
has been made with the concomitant requirement that the bank should begin to
lend at floating rates of interest instead of only at fixed rates as at present.

Now that world interest rates have come down from their peaks of last year,
there is thought to be less desire on the part of the bank's borrower customers
for floatingrate loans and the matter has still not been taken up by the bank's
board, the officials said.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1758 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Bethlehem stays true to steel

BYLINE: BY OUR FINANCIAL STAFF

SECTION: SECTION II; Companies and Markets; Pg. 13

LENGTH: 493 words

HIGHLIGHT: U.S. COMPANY RESISTS DIVERSIFICATION TREND


BETHLEHEM STEEL, the second largest U.S. steelmaker, intends to continue to put
its money into the steel business for at least the next couple of years, Mr
Donald H. Trautlein, chairman, said in a recent interview.  He was outlining the
short-term policy at Bethlehem Steel in the light of the currently depressed
market for its major products.

Bethlehem's strategy seems to contrast with that of some of its competitors,
which are aggressively diversifying into non-steel businesses.  U.S. Steel, the
biggest steelmaker, is currently bidding $6.4bn for Marathon Oil.  National
Steel has moved into the savings and loan industry, while Armco has bought an
insurance company.

"Our intention today is not to look outside the business we are in now," Mr
Trautlein said.

In 1980, steel and steel-related operations accounted for 83 per cent of
Bethlehem's $6.7bn total sales.  The rest came from shipbuilding, plastics and
coal operations.  Underscoring the group's commitment to steel is the company's
$750m modernisation announced last July of four of its steel plants over the
next four years.

Mr Trautlein believes the company's efforts to become "the lowest cost"
steelmaker in the industry - where low productivity has been a major cause of
poor earnings - will pay off when demand picks up.

Bethlehem is not discounting the possibility, however, that it might be forced
in the future to go outside the steel industry, as others have done, in order to
improve its financial performance.  Return on sales was a dismal 1.8 per cent in
1980, down from 3.9 per cent in 1979.

"If we saw that the situation in steel was unlikely to improve we might have to
make another decision," said Mr Trautlein.  "But we don't have a strategy at
this time on non-steel diversification."

The board is considering the sale of "one or more" of the company's coal
properties, which include more than 1bn tons of coal reserves.

Mr Trautlein said the company is also planning to increase third-party sales of
coal by developing some of its properties, either alone or in joint ventures.
Bethlehem mines about 10m tons annually, of which about 8m tons is used in its
own steelmaking operations.

Other steelmakers have already sold some of their coal reserves to finance
either modernisation of their steelmaking facilities or the acquisition of
non-steel businesses.  But Mr Trautlein said the "driving force" behind the
possible sale of coal properties by Bethlehem "isn't the need for money."

He explained that the company's coal properties are appreciated assets - more
than it needs in the future - and that "we ought to consider it good business to
take a part of that appreciation at this point."

The proceeds will go into "general corporate funds" which could be available for
further modernisation of steel plants.  But Mr Trautlein said that how this
money is used will depend on the success of the steel business in the long run.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1759 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Mobil fights on for Marathon

BYLINE: BY OUR FINANCIAL STAFF

SECTION: SECTION II; Companies and Markets; Pg. 13

LENGTH: 232 words


MOBIL, the second largest U.S. oil group, is fighting hard in its bid to stay in
the takeover race for Marathon Oil.It renewed its emergency application
yesterday, asking the U.S. Supreme Court to block its rival bidder, U.S. Steel,
from purchasing shares of Marathon Oil.

The request went to Chief Justice Warren Burger.  Mobil asked that he act before
midnight tonight because after then U.S. Steel will be able to begin purchasing
shares under its oversubscribed offer for a controlling portion of Marathon Oil
stock.

Chief Justice Burger last week dismissed an earlier emergency application to the
high court from Mobil, saying the company had to submit the request to lower
courts first.

Federal Judge John Manos rejected a similar request last Thursday and the
Federal Appeals Court in Cincinnati, Ohio, rejected the same request on Monday.

Mobil has asked the Supreme Court to review a lower court ruling which blocks it
from carrying out its proposed $6.5bn hostile takeover of Marathon on anti-trust
grounds.

Mobil asks that the Supreme Court delay U.S. Steel's $6.4bn friendly merger with
Marathon until the court has been able to decide whether to review the
injunction against Mobil's offer.

Mobil is still hoping that an arrangement to sell Marathon's downstream assets
to Amerada Hess, another large oil company, will remove the anti-trust
objections.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1760 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

GM grants option on prestige property to obtain cheap loan

BYLINE: BY PAUL BETTS IN NEW YORK

SECTION: SECTION II; Companies and Markets; Pg. 13

LENGTH: 222 words


GENERAL MOTORS has granted a U.S. real estate investment company an option to
buy its landmark New York skyscraper in return for a $500m medium-term private
loan at an extremely favourable interest rate.

The transaction involves a private financing of $500m in 10 per cent 10-year
notes for GM, arranged through Corporate Property Investors (CPI). GM currently
has an AA debt rating and would have to pay about 15 per cent in interest to
raise a similar amount in the New York bond market.

In return for this favourable loan, America's biggest car maker said it had
granted an option to buy its Fifth Avenue skyscraper - one of the most valuable
mid-town Manhattan properties - to a partnership in which CPI 15 acting as
general partner.

The option is exercisable in 1991 at a price of not less than $500m as well as
payment of the existing mortgage on the building.

GM said on Monday night it was extremely pleased with the transaction.  Last
April, the car maker, which has faced increasing financial pressure as a result
of the poor state of the U.S. motor industry, indicated that it planned to sell
its Manhattan building, which overlooks Central Park.

But the New York real estate market, which had been booming in recent years,
came to a standstill in the face of continuing high interest rates.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1761 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Goodrich anti-trust accusation

BYLINE: By Our New York Staff

SECTION: SECTION II; Companies and Markets; Pg. 13

LENGTH: 119 words


THE FEDERAL Trade Commission (FTC), charged yesterday that a proposed $131m
acquisition by B F Goodrich, the U.S. tyre concern, of a plastics subsidiary of
Diamond Shamrock, a diversified energy company, violated Federal antitrust laws.

Both the tyre company and Diamond Shamrock declined to comment.

The FTC, the U.S. Government agency responsible for anti-trust law enforcement,
contends that the proposed transaction could reduce competition

The FTC said that in the U.S. Goodrich and Diamond Shamrock are the equal
third-largest manufacturers of vinyl chloride monomer, while Goodrich is the
leading maker of polyvinyl chloride and Diamond Shamrock the sixth largest
manufacturer of the product.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1762 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Sale talks on BSC engineering arm

BYLINE: BY MAURICE SAMUELSON IN LONDON

SECTION: SECTION II; Companies and Markets; Pg. 13

LENGTH: 78 words


TRAFALGAR HOUSE group of the UK, which already has major engineering interests,
is holding talks with the British Steel Corporation about the possible takeover
of Redpath Dorman Long (RDL), the Corporation's loss-making heavy engineering
subsidiary.

Both sides last night confirmed that talks had been taking place but refused to
discuss their outcome

RDL, which employs 5,500 people, is the biggest supplier of structures for the
offshore industry in the UK.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1763 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

New York weakness sparks fall

BYLINE: By Our Euromarkets Correspondent

SECTION: SECTION II; Companies and Markets; Eurobonds; Pg. 13

LENGTH: 245 words


FIXED-RATE dollar Eurobonds showed quite sharp falls yesterday with prices
slipping as much as 3/4 point in some cases, following the pronounced weakness
of the New York bond market overnight.

Short-term interest rates also edged higher in Europe with sixmonth Eurodeposits
adding 1/2 point to 14 3/4, but dealers sais that the fairly active trading in
the bond market was mostly confined to swapping rather than outright selling.

The sharp decline of the New York bond market has made Yankee issues and U.S.
Treasury bonds more attractive in yield terms than Eurobonds, they said,
although there was some selective support from the Continent for high-coupon
U.S. corporate Eurobonds.

Nonetheless, the new Mitsubishi Chemical issue with warrants held up rather well
to be quoted yesterday at a discount of only 3/4 point.  Dealers attributed its
success to the attractive warrants feature.

No new straight dollar bonds were announced yesterday, but a large floating-rate
note was launched for Banque Francaise du Commerce Exterieur through Credit
Suisse First Boston.  The $250m, five-year issue bears a margin of 1/4 per cent
over the mean of the bid and offered six-month Eurodollar rate and a minimum
coupon of 5 1/4 per cent.

Minorco, the natural resources group, is offering a $60m convertible issue
through Hambros.  The 15-year bonds bear an indicated semiannual coupon of 9 to
9 1/4 per cent and conversion premium of 10 to 12 per cent.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1764 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

White Motor loses $301m

BYLINE: By Our Financial Staff

SECTION: SECTION II; Companies and Markets; Pg. 13

LENGTH: 74 words


WHITE MOTOR said in Cleveland that unaudited financial statements filed with the
Securities and Exchange Commission disclosed that the company incurred losses of
about $146m in connection with truck and farm equipment operations now
discontinued and a deficit of about $165m on the disposition of these operations
during the 15 month period ended March 31.

Net loss for this period was $301m after extraordinary credits of about $11m.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1765 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Carlsberg group to sell its brewing know-how to China

BYLINE: BY HILARY BARNES IN COPENHAGEN

SECTION: SECTION II; Companies and Markets; International Companies and Finance;
Pg. 14

LENGTH: 213 words


UNITED BREWERIES, the Danish brewer best known for its Carlsberg and Tuborg
brands, is to sell brewing know-how to China.

It has signed a technical and co-operation agreement with the Guangzhou (Canton)
Brewery under a deal claimed to be the first between a Western and Chinese
brewery.

Mr Poul Svanholm, UB's managing director, expects to sign similar agreements
with other brewers in China.  Stressing that China planned to quadruple beer
production over the next decade, he said the deal had some "interesting
perspectives."

UB also said yesterday that it was setting up a biotechnical company, Carlsberg
Biotechnology, to exploit a yeastbased enzyme.

The process could be used, for example, to make "human" insulin as an
alternative to the chemical and gene-splicing techniques which have been
developed by other companies.

Carlsberg's scientists, who believe they are currently ahead of other
researchers in this field, say the process has enormous potential.

UB does not plan to go into the production of the end products, such as insulin,
but to sell the active agent and the know-how to clients.

It would be several years before the process was fully developed for commercial
exploitation but "the process has substantial earnings potential."

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1766 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Spain's capital market comes of age

BYLINE: ROBERT GRAHAM in Madrid

SECTION: SECTION II; Companies and Markets; International Companies and Finance;
Pg. 14

LENGTH: 695 words

HIGHLIGHT: Financial liberalisation instigated by the Spanish Government in 1977
has led to considerable development of the country's capital market and
significant growth in syndicated peseta loans.  ROBERT GRAHAM in Madrid reports


OVER the past year syndicated peseta loans have become a significant element in
financing the medium requirements of Spanish industry, notably in the case of
the state holding company.  INI, the steel industry, and the utilities.

Resort to large-scale floating rate peseta syndications reflects the financial
liberalisation set in motion in 1977 by which the Government sought to introduce
a proper capital market in Spain and remove the out-dated dependence on
commercial and savings bank lending at uneconomic rates.

The first syndicated peseta loan -- Pta 7bn of two-year funds -- was signed in
October 1980 by the national motor group, Seat.  Since then about Pta 100bn
($1.03bn) worth of syndicated peseta credits have either been signed or are
being negotiated, the vest majority of which were initiated during 1981.

The Seat loan, which set the ball rolling, was to some extent political.  The
company was state controlled, and the banks participated largely as a gesture or
solidarity for a troubled national company.

The real test for the new market came last May when Chase Manhattan successfully
negotiated a Pta 7bn credit over six years for the private utility, Sevillana.
This represented a breakthrough for two reasons: it extended the length of the
credit significantly; and it showed that Spanish banks, albeit on foreign
initiative, were willing to try the process in the private sector.

By offering a six-year maturity the Sevillana credit broke the innate caution of
the Spanish banks regarding the length of such a large credit at commercial
rates.  For the more conservative Spanish banks the initiative came as an
unpleasant surprise.

This sense of encroaching on a local preserve by a foreign bank quickly prompted
a reaction.  One month later the Spanish banks themselves put together a loan
package to Sevillana, this time for Pta 4bn but also over six years.  Since then
the new market has not looked back.

The syndicated peseta loan market has been nurtured by the Bank of Spain, and
has been championed by the more aggressive of the large Spanish banks.  Banco de
Vizcaya in particular has been active, being agent in six out of the 13 credits
so far arranged.

But stimulation has also come from external forces.  The depreciation of the
peseta in the past 14 months has been sharp.At the time of the signature of the
first such loan the peseta stood at Pta 76 to the dollar.  The parity is now
down to Pta 97 against the U.S. currency.

Not unnaturally depreciation on this scale has forced many companies and
institutions to turn away from the Euromarkets and tap instead a less costly
peseta market.  Hand in hand with the difficulties of coping with exchange rate
risk has been the risk of fluctuating interest rates.  Borrowers have preferred
to opt for fluctuations in local market rates.  And this too has been a novelty.
Until recently the idea that there could be floating peseta loans for medium
term finance was almost inconceivable.

A further element that has favoured the development of peseta loans has been the
surplus liquidity in the Spanish banking system.  Demand for private sector
credit has been slack, so much so that the Bank of Spain has revised downwards
its money supply targets.

The market, however, has clearly begun to approach its current optimum and
cannot expect to continue to expand at the pace of 1981.  Indeed there is
concern that large scale funding of single institutions or companies will absorb
too much of the available pool of funds.  This concern was publicly expressed
recently when the three integrated steel companies with an INI guarantee sought
Pta 20bn -- equivalent to almost a quarter of the total raised so far in peseta
credit form.

Some banks complain that their margins are squeezed on peseta loans, especially
as a turnover tax is applied.  They maintain that this could ultimately inhibit
the growth of this market.  However, the more sanguine in the banking community
feel that they have to learn to live with tighter margins, and that floating
rates for medium term peseta finance will continue to have an irresistible
attraction.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1767 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Norsk-Hydro forecasts maintained annual profit

BYLINE: BY FAY GJESTER IN OSLO

SECTION: SECTION II; Companies and Markets; International Companies and Finance;
Pg. 14

LENGTH: 233 words


NORSK HYDRO, the industrial and energy group which is Norway's largest
industrial concern, expects after-tax profits for 1981 to broadly match the NKr
1.07bn ($185.4m) achieved in 1980.  Turnover at about NKr 16bn will also be in
line with the earlier year.

Mr Odd Narud, Hydro's president, said the overall result was satisfactory thanks
mainly to the group's earnings from offshore oil and gas, now its largest single
source of income.

Among its land-based activities, petro-chemicals and light metals (magnesium and
aluminium) had been hard hit by the world recession and the prospects for 1982
were not encouraging.

The fertiliser division on the other hand had a good year in 1981 and the
outlook was "reasonable": Hydro's involvement in foreign fertiliser plants had
made the group one of the world's largest in this field.

Despite the current slump on the world aluminium market Hydro was optimistic
about the longer term outlook for the metal, and was going ahead with expansion
of its smelter in Karmoy, western Norway.

This, the group's largest investment project in mainland Norway, will expand
capacity to 160,000 tonnes per year from 110,000 tonnes, and is expected to be
completed late this year or early in 1983.

Norsk Hydro has also recently increased its stake in another Norwegian aluminium
plant Sor-Norge Aluminium to 25 per cent from 20 per cent.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1768 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Further growth in 1981 for Banca del Gottardo

BYLINE: BY JOHN WICKS IN ZURICH

SECTION: SECTION II; Companies and Markets; International Companies and Finance;
Pg. 14

LENGTH: 200 words


AN INCREASED dividend total and a further rights issue are announced by Banca
del Gottardo, the first Swiss bank to disclose figures for calendar 1981.  The
Lugano-based bank lifted its balance sheet total by 16 per cent to SwFr 3.65bn
($2.05bn) in the year, and gross profits by 15 per cent to SwFr 34.5m.  Net
earnings were up by 11 per cent to SwFr 25.5m.

The bank recommends an unchanged 12 per cent dividend on increased capital of
SwFr 90.75m, and a silverjubilee bonus of 2 per cent.

At the bank's February 26 annual meeting, shareholders will also be asked to
approve a one-for-ten rights issue of new shares and participation certificates,
the conversion of part of the participation - certificate capital in share
capital of the same nominal value, and the creation of new share capital without
subscription rights for existing holders of shares and participation
certificates.

If all the recommendations are approved, capital resources will increase to SwFr
310m, including SwFr 80m in share capital and SwFr 20m in
participation-certificate capital.

The Bahamas subsidiary Gotthard Bank International expanded its balance-sheet
total by 12 per cent to $28m in 1981.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1769 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Montedison expects recovery

BYLINE: By Our Financial Staff

SECTION: SECTION II; Companies and Markets; International Companies and Finance;
Pg. 14

LENGTH: 89 words


MONTEDISON, in a report to the Milan brokers' committee, said the top priority
for Italy's biggest petrochemicals group is to return to profits.

Sig Mario Schimberni, the group's chairman, said a financial reorganisation to
reduce the group's interest burden, and a change in the production mix to
emphasise secondary chemistry items, should turn the group's results round.

The most recent figures show the group posted a loss of L267bn ($223m) in the
first half of 1981, compared with a loss of L435bn for all of 1980.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1770 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Daimler-Benz in U.S. reshuffle

BYLINE: BY OUR FINANCIAL STAFF

SECTION: SECTION II; Companies and Markets; International Companies and Finance;
Pg. 14

LENGTH: 104 words


DAIMLER-BENZ, the West German motor group, is to realign its organisation in
North America. A new company, Daimler-Benz of North America Holding Company,
will be the parent corporation of Mercedes-Benz of North America Freightliner
and Euclid.

Mercedes - Benz of North America will continue to be the passenger car importer
and distributor and will also be the parent of the recently formed Mercedes-Benz
Truck Company.  In addition it will be the parent of Mercedes-Benz Canada, of
Mercedes-Benz Service Corporation and of two companies responsible for retail
sales operations in New York and Los Angeles.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1771 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Kuala Lumpur listing for Multi-Purpose Holdings

BYLINE: BY WONG SULONG IN KUALA LUMPUR

SECTION: SECTION II; Companies and Markets; International Companies and Finance;
Pg. 15

LENGTH: 332 words


MULTI-PURPOSE HOLDINGS, the investment arm of the Malaysian Chinese Association
(MCA), a partner in the Malaysian Government, has obtained a listing on the
Kuala Lumpur Stock Exchange, and its shares will be traded from January 11.

An application for listing has also been made to the Singapore exchange, which
is expected to allow trading on the same day.

MPH, was incorporated five years ago by the MCA with a public subscription of
30m ringgit (U.S.$13.3m).  After a series of bonus and rights issues, its
paid-up capital is now 380m ringgit in one ringgit shares.  It would rank second
in paid-up capital, after Singapore's United Overseas Bank, on the exchanges.

The group controls three publicly listed companies -- Bandar Raya, one of the
largest housing developers in Malaysia, Magnum, the lottery organisation, and
Malaysian Plantations.

It also has equal control with Pernas, a Government agency, of United Malayan
Banking Corporation, the country's third largest bank, and has controlling
interests in Guthrie Berhad, and Dunlop Estates, both purchased from their UK
parent companies last year.

MPH has agreed, as previously reported, to issue 20m new shares to Bumiputras
(Malays) at a price to be fixed by the Government's capital issues committee.

MPH shares are currently trading at 3.5 ringgit to 4 ringgit.  The group expects
to report at least 19m ringgit in pre-tax profits for 1981, and substantially
higher profits this year if commodity prices improve.

MCA controls MPH through KSM, a co-operative society, which holds more than 45
per cent.

* Chocolate Products (M) Berhad, has also applied for a listing on the Kuala
Lumpur exchange.  It is making a 3.3m issue of 1 ringgit shares at 1.2 ringgits
each, of which 43 per cent is reserved for Bumiputras.

The company, manufactures chocolates under licensed brand names like Van Houten
and Windmolen.  It expects a pretax profit of 2.8m ringgit for 1981 and promises
a 10 cent dividend.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1772 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Nissan in talks on production in India

BYLINE: By K. K. Sharma in New Delhi

SECTION: SECTION II; Companies and Markets; International Companies and Finance;
Pg. 15

LENGTH: 300 words


A DELEGATION from Nissan Motor of Japan is to hold talks this month with Maruti,
a government-owned company, on building a low-price car in India.  Other
contenders include Renault and Peugeot of France, and BL of the UK, but
indications are that Nisson is at present the favourite. Agreement could be
reached in the next few weeks.

In a separate deal, Nissan said, it has tentative plans for it and
State-supported Hydeabad Allwyn to build an assembly plant to manufacture a
threetonne truck in Andhra Pradesh, Central India.  Final agreement has not been
reached yet, Nissan added.

The controversial Maruti project was started by the late Mr Sanjay Gandhi, son
of Mrs Indira Gandhi, the Prime Minister.  After setting up an elaborate factory
complex in Haryana state, he abandoned plans to make the low-price small car for
which the project was licensed, and diversified into areas such as road rollers.

After his death in June, 1980, liquidation proceedings were started.  But
shortly before the courts were to pass final orders on Maruti, the Indian
Government nationalised it and paid off all its debts.  It was then decided that
Maruti should again attempt to make cars.

At present, only two cars are made in India and both are highly priced and
obsolete, Recently, however, Premier Automobiles signed an agreement with Fiat
to import dies and other equipment to make a new model at its plant in Bombay
where at present it makes the Padmini based on a previous agreement with Fiat of
Italy.

The other car manufacturer, Hindusthan Motors of Calcutta, has just signed an
agreement with Vauxhall of Britain to make a new car at its plant where it
presently makes the Ambassador which is based on a collaboration agreement with
Morris that lapsed more than two decades ago.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1773 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Non-ferrous boost for Union Steel

BYLINE: By Our Financial Staff

SECTION: SECTION II; Companies and Markets; International Companies and Finance;
Pg. 15

LENGTH: 138 words


UNION STEEL Corporation, the South African metals producer which claims the lead
in the country in special steels, expects its non-ferrous division to support a
"satisfactory" group performance in the current financial year ending September
30.

Last year's increased demand for non-ferrous products is seen as remaining
constant, with profits in the division showing a further gain.

Weakening motor industry demand for steel, and fierce competition from overseas
manufacturers of forged tool steel, are forecast.

Union Steel reported pre-tax profits of R15.03m ($15.5m) in the nine months
ended September 30, against R17.40m in the 12 months to December 31, 1980, and
net profits of R11.2m against R13.4m, for an adjusted gain of 12 per cent.

Earnings per share totalled 37.64 cents, against 44.95 cents.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1774 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Indian banks hard pushed to meet reserve ratios

BYLINE: BY KEVIN RAFFERTY IN BOMBAY

SECTION: SECTION II; Companies and Markets; International Companies and Finance;
Pg. 15

LENGTH: 316 words


MANY INDIAN banks are failing to meet the stiffer reserve requirements imposed
by the Indian Government at the end of last year.  This poses a delicate problem
for the authorities who have to decide whether to apply tough penalties or to
persuade banks to fall into line.

Senior executives of several banks have admitted for the first time that they
were hard pressed to meet the cash reserve requirement and some said that they
had fallen behind on the statutory liquidity ratio.  Both rates have been pushed
up recently.  The cash reserve on deposit with the Reserve Bank rose to 7.5 per
cent of deposits at Christmas and is scheduled to rise to 7.75 per cent on
January 29 and to 8 per cent on February 26.  The liquidity ratio went up to 35
per cent in October from the low thirties earlier in the year.

There is more incentive for banks to abide by the cash reserve ratio because
there is already a built-in penalty of high interest rates on the short-fall,
plus loss of a week's interest on the whole of the cash deposited with the
Reserve Bank.

In theory the Reserve Bank can also fine banks failing to meet the liquidity
ratio of Rs 2,000 ($220) a day but one bank executive said: "In law the
punishment also includes imprisonment, but so far the Reserve Bank has been
understanding."

Banks have faced an especially tight time recently.  The bigger ones had to
provide Rs 1bn ($110m) to the Food Corporation of India, apart from the usual
liquidity and cash demands.  Normal end-year borrowing requirements of
businesses are also heavy.  On top of this, some deposits have also been
withdrawn to buy special bearer bonds, a scheme designed by the Government to
mop up black (illegal) money.

In some cases banks may be tempted not to cut overdrafts too quickly, especially
if the Reserve Bank is slow to penalise them for failing to keep to the
liquidity ratio.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1775 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Fine terms seen for Indian steel plant loan

BYLINE: BY KEVIN RAFFERTY

SECTION: SECTION II; Companies and Markets; International Companies and Finance;
Pg. 15

LENGTH: 524 words


INDIA'S next big international commercial loan, for the steel plant project won
recently by Davy Corporation of the UK, may reach $1bn, according to bankers in
Bombay.  Despite its size, the offering may attract the finest rates that
developing Asian countries have seen, thanks to tax concessions and export
credits.

Negotiations will begin in earnest before the end of the month when the location
of the steel plant has been finalised.  Some bankers are talking confidently of
a spread of a flat 3/8 per cent above the London interbank offered rate (Libor)
for the 10 year life of the loan.  Others contend that if the Indian Government
pushes hard, it may achieve a rate as low as 1/4 per cent, at least for part of
the term.

The total cost of the 1.5m tonne a year plant to be built at Paradip in Orissa
State is put at $2.87bn, of which $1.5bn will be provided under export credits
from the UK, France and West Germany and a further $560m in aid from the UK and
France.  The size of the Euromarket loan was originally pencilled in at $750m,
according to bankers at the State Bank of India, the country's largest
commercial bank, but will probably now be of at least $800m and could reach
$1bn.

The very fine terms are expected because of the packaging of the loan which will
allow the benefits of the export credits and of the double taxation agreement
recently signed between India and the UK.

The bankers did not go into the details of the packaging, but said that a spread
of 3/8 over Libor for this loan would be equivalent to 1 per cent or even up to
1.4 per cent above Libor for some lenders.

As there is still not much Indian borrowing on the market and banks are reported
to be competing keenly to get into the deal, the Indian Ministry of Finance may
try to pare the rates even more finely.

The lead managers for the issue will be Lazard Brothers of the UK, Davy's
Bankers, plus Paribas of France, Commerzbank of West Germany, and the State Bank
of India.  Alsthom of France and Schloemann-Siemag of Germany will be Davy's
principal partners in the project.  The lead group is also expected to include a
number of the UK's big four banks plus Manufacturers Hanover Trust of the U.S.
which has been courting India.  India is keen to see good representation from
Japan among the lenders.

India is supposed to limit its commercial borrowings to about $1.2bn a year for
the next three years under the terms of the SDR 5bn ($5.8bn) loan from the
International Monetary Fund, but the Paradip project is excluded

Because of a shortage of traditional soft loan funds, India will, however, be
pushed more into the commercial markets.  The industrial Development Bank of
India, the major supplier of long-term funds to Indian industry, has just raised
its first syndicated loan.  The value of the Swiss francs offering was raised
from the equivalent of $15m to $25m because of the response of the banks.

The Government has also given permission to private sector business to borrow
internationally without government guarantee and an offering worth about $23m by
Reliance Textiles is nearing finalisation.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1776 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Pleasurama improvement blunted by Gaming Tax

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 16

LENGTH: 494 words


ALTHOUGH PRE-TAX profits of Pleasurama, the entertainment and amusement concern,
improved from £4.6m to £5.58m, Mr George Martin, the managing director, says the
profits would have been some £950,000 higher had it not been for the new Gaming
Tax.

Of this total, he says £650,000 was the group's share of the tax on its two
associate companies -- the Ritz Casino and Casanova Club -- which were harder
hit by the duty than its provincial casinos.  However, he regards the overall
increase in profits as "very satisfactory."

The associates' share of the profits was up from £2.1m to £2.31m.  Group
turnover rose from $12.71m to £16m in the year to September 30 1981.  At the
interim stage, pre-tax profits increased from £1.53m to £2.09m from higher
turnover of £7.18m (£5.86m).

The final dividend is hoisted from 4.5p to 7p for a total up from 6.5p to 9.5p.
A one-for-one scrip issue is proposed.

Tax for the year was up from £2.37m to £2.76m, with associates' share rising
from £1.1m to £1.24m.  After minorities of £29,000 (£26,000), attributable
profits were £2.79m compared with £2.21m.  Stated earnings per 5p share rose
from 33.8p to 42.8p.

The group opened three new casinos during the year and acquired one other.  Mr
Martin says he believes there are opportunities to buy more provincial casinos,
and the group is still interested in expanding in London.

Commenting on other parts of the group, he says there was "solid growth" in the
amusement parks and arcades division, with profits up by about 10 per cent.
Catering turnover rose by 15 per cent, with a similar increase in profits, while
dance halls increased their contribution by some 10 per cent.  Performance
overseas was "not dramatic" -- but this is a very small part of the business.

* comment Pleasurama's 21 per cent rise in pre-tax profits does not do it full
justice for an extra £1m was lost in increased gaming tax.The improvement from
provincial casinos was due to growth from existing units.  This year should be
even better with significant contributions from four new outlets.  The company,
particularly with its 25 per cent stake in the Ritz Casino, has benefited from
the carnage among many of its competitors.  Pleasurama has cash of £4.5m with no
borrowings.  Expansion is unlikely to encompass diversification, so the shares
could remain the purest casino investment around with about 80 per cent of
profits coming from gaming.  The 55 per cent rise in the final dividend still
leaves the total of 9.5p covered 4 1/2 times, yielding 4.6 per cent.  The share
price fell 5p yesterday to 305p, but this should be set against an increase of
around 25 per cent since October.  The P/E of about 7 looks reasonable for
Pleasurama's growth record -- pre-tax profits have risen by 485 per cent over
the last five years.  Grand Metropolitan still has 28.7 per cent of the equity,
but its American adventures have stifled bid rumours.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1777 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Howden Gp. at £3.37m halfway

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 16

LENGTH: 332 words


DESPITE PRESSURE on margins, engineer Howden Group increased taxable profits
£3.05m to £3.37m in the first six months to October 31 1981.

Sir Norman Elliot, chairman, says the activity level remained satisfactory,
liquidity is sound and the gearing ratio improved.  He anticipates that the
first half profit trend will continue in the second six months and liquidity
will remain strong.

The directors intend to declare an interim dividend of 1.46p (1.33p) net per 25p
share in March.  Last year a total of 4p was paid on taxable profits of £7.75m.
Earnings per share for the six months are given as 17.6p.

After tax of £1.25m (£1.12m) this group, which specialises in the design and
manufacture of air, gas and fluid handling equipment, produced attributable
profits of £2.12m (£1.93m).

* comment A now-familiar scene was enacted yesterday when Howden Group brought
out modestly improved results and a couple of pence were shaved off the share
price.  Howden shares have easily outrun the market, rising at about 35 per cent
a year over a period stretching back to 1974.  Now 150p. they seem in recent
months to have reached a level from which it will be difficult to stage a
further breakthrough.  Howden has a good stock of orders, especially in Ganada
and South Africa, and work on AGR contracts will lift profits for two or three
years after 1983.  From that point, however, assumptions about further demand
for nuclear nower stations -- and gascooled systems in particular -- become
crucial, and the signs are not favourable.  For all that, a fully taxed p/e of
11 discounts steady progress over the medium term, in the direction of £8 1/2m
before tax this year and perhaps £9 1/2m in 1983.  A yield of 4 1/4 per cent
emphasises that Howden paper is now quite highly rated.  The moment may be
approaching when Howden could reasonably exploit this rating in order to broaden
its technological range and reduce its dependence on the nuclear industry.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1778 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Owners Abroad Grp. unlisted quotation

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 16

LENGTH: 247 words


THE FULL prospectus is published for the placing by Le Mare Martin of 6m shares
in Owners Abroad Group, the company which has reversed into Kintyre Tea and will
be traded on the Unlisted Securities Market starting next Monday.

The placing is being made at 10p a share, par raising £100,000 for the company
(to cover the costs of the reverse takeover) and £500,000 for the vendors of
Owners Abroad.

* comment Apart from the year when Owners was caught out holding prices when
surcharges were going up in leaps and bounds the record is impressive enough.
And according to the directors the upward curve shows no signs of weakening.
The optimism is based upon the increasing flow of self-catering holidays
overseas.  Owners is launching itself on a fully taxed p/e of 8.6 historic which
gives room for a few pence premium when dealings start.  The directors are not
taking much from the issue -- roughly twice the amount of bonuses they paid
themselves the previous year as a private company.  Capital gain may be more tax
officient but the real motive behind the USM move seems to be the opportunity to
use paper to enlarge the leisure interests.  Also a quote gives the small band
of people running the company an easier and probably more lucrative way out when
the time comes to stop selling airline tickets and start growing roses.
Unfortunately, with Euroflame and ACI still fresh in the mind, Owners could have
been luckier in its timing for a USM launch.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1779 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Rosehaugh's £19.7m bid for London Shop

BYLINE: BY WILLIAM COCHRANE

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 16

LENGTH: 196 words


ROSEHAUGH, the property company in which Mr Godfrey Bradman, the group chairman,
has a 25.7 per cent interest, yesterday launched a £19.7m bid for the equity and
6.5 per cent convertible of London Shop Property Trust.

The offer for the London Shop ordinary is 135p a share, 2p below Monday's close.
London Shop shed the 2p margin yesterday to close at the bid level, while
Rosehaugh closed unchanged at 250p.

Stock market reaction yesterday was that the bid was unlikely to succeed.
London Shop's asset value, diluted for the convertible which is presently under
offer, is 209p a share according to its advisers, J. Henry Schroder Wagg.  Fully
diluted, and allowing for London Shop's own proposed merger with its sister
company, Beaumont Properties, the figure would still be 198p a share.

Mr Bradman was not impressed by this argument last night.  "London Shop's share
price was 108p before we came on the scene last December." he said, "and without
our interest it would probably fall back again."

Rosehaugh took a 21.4 per cent stake in London Shop at the end of December when
it exercised an option to acquire a parcel of shares from McLeod Russell.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1780 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

SPAIN

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 16

LENGTH: 75 words

                 Price
   January 5       %   +or-
Banco Bilbao       335
Banco Central      335
Banco Exterior     303
Banco Hispano      325
Banco Ind. Cat.    115
Banco Santander    347
Banco Urquijo      213 -1
Banco Vizcaya      355
Banco Zaragoza     218 -2
Dragados           130 +6
Espanola Zinc       60
Fecsa             58.7 -6
Gal. Preciados      43
Hidrola           63.7 -12.8
Iberduero           50 -8
Petroleos           87 -2.5
Petroliber         101
Sogefisa            40
Telefonica          72 -1
Union Elect.        65 -7

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1781 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Fledgeling share placing to gain improved status

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 16

LENGTH: 436 words


Fledgeling Investments, an investment company formed in 1962 by a number of
investment trusts associated with Robert Fleming and Co., is coming to the
market with a placing of 2.3m ordinary shares at 58.5p per share.  This amounts
to 18.6 per cent of the company's issued shares.

The purpose of the placing, being made by Robert Fleming, is to gain a Stock
Exchange listing for Fledgeling to gain approved investment trust status.

Fledgeling has a diversified portfolio and has invested in companies, both
listed and unlisted which, for reasons such as small size, poor marketability,
lack of yield or speculative characteristics, were unsuitable for direct
investment by its shareholders.

Net asset value has grown from £2.7m or 21.3p per share at January 21 1976 to
£9.5m or 76p per share at December 29 1981.  Borrowings at December 11 consisted
of a £0.5m 6 1/4 per cent debenture stock and £2,000 in bank loans.  Fledgeling
also had underwriting liabilities of £35,000.

Gross revenue has grown from £257,000 in the year to January 21 1977 to £470,000
in 1980-81 and £208,000 in the first half of the current year.  Net revenue
after tax over the same period rose from £141,000 to £287,000 and £121,000 in
the first half of the current year.  Dividends per share were 0.825p in 1976-77,
rising to 2.175p last year.

The directors intend to recommend an unchanged dividend of 2.175p per share for
the current year.

The shares in the placing are being sold by existing shareholders.  Following
the placing, Anglo-American Securities Corporation will hold 24 per cent of the
shares, First Scottish American Trust 6.4 per cent, Robert Fleming Investment
Trust 5.1 per cent, NC Lombard Street Nominees 8.4 per cent, North American
Trust 7.2 per cvent and Possfund Nominees 6.4 per cent.

Brokers to the placing are Carr Sebag and Co. Dealings are expected to begin on
January 12.

* comment Specialised investment trusts have been popular of late, but
Fledgeling shows the merits of building a highly diversified portfolio of small
or unusual equities.  Among general trusts, very few have surpassed its 257 per
cent rise in asset value since 1976.  A lot of Fledgeling's holdings have been
in the portfolio for some time and now that the liability for capital gains tax
is to be lifted, the trust may become a more daring investor.  Fro those
interested in the potential excitement of this type of vehicle, the 23 per cent
discount to net asset value makes Fledgeling look attractive compared to
recently launched trusts with similar policies.  The yield is 5.3 per cent.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1782 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

DIVIDENDS ANNOUNCED

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 16

LENGTH: 84 words

                                      Date    Corre-  Total   Total
                           Current     of    sponding  for    last
                           payment  payment    div.    year   year
Halma                int.  0.56     Feb. 15  0.47 *   -      1.22 *
Pleasurama                 7        -        4.5      9.5    6.5
Winterbottom Energy        0.45     Mar. 9   1.3 ++   0.65   2 ++




* Equivalent after allowing for scrip issue.

+ On capital increased by rights and/or acquisition issues.

++ After sub-division of shares.

Dividends shown pence per share net except where otherwise stated.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1783 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Investment Co. revenue ahead midway

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 16

LENGTH: 77 words


After tax of £82,846, compared with £69.920, revenue of the Investment Company
came out ahead from £144,454 to £170,764 for the six months ended September 30
1981.

Earnings per 25p share are shown as 2.44p, against 2.06p, and as usual there is
no interim dividend -- last year's single payment was 1.75p net per share.

Total income for the half year amounted to £311,374 (£276,154).

The ultimate holding company is New Centurion Trust.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1784 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Halma rises and pays more after six months

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 16

LENGTH: 263 words


TAXABLE PROFITS of Halma advanced from £678,000 to £837,000 for the 27 weeks to
October 3 1981 and the net interim dividend is being effectively increased from
0.468p to 0.561p.  A final equal to 0.75p was paid for 1980-81.

It is pointed out that the group, which manufactures safety systems, fire and
environmental control equipment and specialised engineering equipment, has
continued to generate cash at a satisfactory rate and that the net cash position
at October 3 was significantly higher than a year earlier.

The directors say the strength the group has displayed during the recession
indicates that its companies are now substantially acclimatised to the
conditions.  They feel with some confidence that even if the economy were to
remain at its present depressed level the group should be able to look forward
to a satisfactory growth in profitability.

Turnover for the half year rose from £7.12m to £8.02m.  The pretax profit was
after lower interest of £11,000 (£46,000) and the attributable figure, £397,000
(£322,000) was after minorities of £5,000 (£3,000).

Stated earnings per 10p share improved to 2.04p (1.64p).  All comparisons are
for a 26-week period.

In December Halma purchased the Hanovia Group of Companies.  Their products will
"fit well within the environmental control division" and it is believed they
hold considerable potential for further development.

Volumatic, bought in January last year, has proved a very satisfactory
acquisition, comfortably exceeding its budgeted profit for the period under
review.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1785 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Winterbottom Energy Trust

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 16

LENGTH: 122 words


Pre-tax revenue of the Winterbottom Energy Trust fell from £767,099 to £351,339
in the year to November 30 1981.  The directors point out, however, that the
figures cover a transitional year during which the company changed its role from
that of an orthodox diversified investment trust to that of a specialist trust
investing exclusively in energy and energy related stocks.

A year ago it was estimated that such a portfolio would produce earnings per
share of 0.6p and a dividend of 0.6p was forecast.  Earnings are in fact 0.72p
(2.02p), and the final dividend is 0.45p making 0.65p (2p, after sub-division of
shares).  Net asset value per share is 78.5p (82.3p).

Tax for the year took £156,842 (£261,268).

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1786 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Increase in Devenish property value

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 16

LENGTH: 200 words


A property revaluation as at October 2, 1981 has revealed a £26.6m increase in
the fixed asset value of J. A. Devenish and Company, Dorset-based brewer.

The basis of the revaluation was the market value of properties with their
existing use as a group of public houses supplied by a brewery. Properties held
for disposal were valued at the market price for any use and the brewery
industrial premises were valued on a depreciated replacement value basis.  The
value of all properties is now £34m.

In his chairman's statement Mr A. E. Ledger-Hill, who will be retiring at the
AGM on January 27 and will be appointed president of the company, says that
while beer production nationally was down 5 per cent in 1981, total beer sales
of Devenish fell by only 1.7 per cent.

He reports that the company sold a much larger proportion of its own brewed
beers.  In anticipation of a poor year, overheads and distribution costs were
firmly controlled and the loss at the Greenbank Hotel was reduced.

The Greenbank has now traded for a full year, having been closed for three
months during the previous year.  It is now showing continued improvement in all
aspects, says Mr Ledger-Hill.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1787 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Northerm Foods outlook

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 16

LENGTH: 273 words


FURTHER PROFIT improvement is expected by the chairman of Northern Foods, Mr
Nicholas Horsley despite the problems he outlines with Government policies, high
interest rates on both sides of the Atlantic, and the Common Agricultural
Policy.  Pre-tax profits rose by £3.07m to £34.63m for the year to September 30
1981.

A record capital expenditure programme of £37m is planned and Mr Horsley says
the two main projects are at Pork Farms with two new factories, and Fox's
Biscuits, with a major development to improve efficiency.  Further funds will be
spent at Northern Dairies on developing special milks.

On November 10 the company announced a rights issue to raise £41m.  The
proceeds, says Mr Horsley, are partly to offset borrowings but also to enable
the company "to take advantage of opportunities for further acquisitions."

The company's holding in the Avana Group rose to 20.5 per cent in the last
financial year.  Mr Horsley states that the proportionate share of Avana Group
profits will be incorporated into the next group accounts.

The company has also announced an increase in its authorised capital from £56.5m
to . . . 67.5m by the creation of a further 44m ordinary shares of 25p each.

Ordinary shareholders' tangible funds stood at £138.76m (£117.88m).  Total fixed
assets rose from £151.49m to £169.44m and net current assets were slightly ahead
at £27.6m against £25.49m previously.  There was a decrease in borrowings of
£8.18m compared with an increase last time of £27.21m.

Current cost figures showed pre-tax profits of £26.49m (£24.38m) on turnover of
£743.3m (£581.54m).

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1788 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

YEARLINGS

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 16

LENGTH: 41 words


The interest rate on this week's issues of local authority yearling bonds is 15
1/2 per cent, compared with 15 5/8 per cent last week and 13 3/4 per cent a year
ago.  A full list of this week's issues will be published in tomorrow's
editions.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1789 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Receivers appointed at Youngers

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 16

LENGTH: 65 words


Guy Parsons and Richard Agutter, partners in chartered accountants Peat,
Marwick, Mitchell and Co, have been appointed receivers and managers of Younger
Furniture.

The company manufactures dining room and occasional furniture in London and
Andover, and employs 120.

The joint receivers intend to allow the company to trade with a view to selling
the business as a going concern.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1790 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Abbey £2.5m expansion

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 16

LENGTH: 77 words


A £2.5m expansion of its toolmaking interests is announced by Abbey, the Dublin
housebuilding, property development and industrial group with half its business
in the UK.

Under the plan Abbey is to establish a tool room in Dun Laoghaire to manufacture
large tools for the computer, furniture, leisure goods and automotive
industries.

It is also to set up specialist facilities in Sligo to produce micro-miniature
tools for the electronics industry.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1791 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

UTD. CARRIERS NAME CHANGE

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 16

LENGTH: 46 words


United Carriers proposes to change its name to United Parcels.  It is also
proposed to restructure the internal trading arrangements of the group.
Principal parcel operations will continue to be undertaken by a subsidiary which
will change its name to United Carriers.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1792 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

13% rise in new premiums at Norwich Union

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 19

LENGTH: 441 words


A 13 per cent increase in new annual premiums on its world-wide life and
pensions business from £64.3m to £72.7m is reported for 1981 by Norwich Union
Insurance Group, while single premiums on world-wide business rose 16 per cent
from £62.6m to £72.5m.

In the UK, new annual premiums were 5 per cent higher at £53.3m against £50.7m,
with good life figures being offset by a dull pensions market.  Life annual
premium rose 18 per cent to £30.7m, but self-employed annual premiums rose
marginally from £2.1m to £2.3m and group pension premiums were slightly higher
at £29.1m (£28.9m).

Single premium business in the UK was nearly 13 per cent up at £62.9m (£55.8m).
Pensions business was much stronger here, self-employed premiums increasing from
£4.1m to £7.5m.  Group pension single premiums were slightly higher at £29.5m.

The group had a mixed result on its unit-linked business.  Annual premiums on
linked life business fell from £500,000 to £300,000, but single premiums rose
from £7.8m to £9.6m.  Annual premiums on linked pensions business more than
doubled from £600,000 to £1.5m.

Overseas annual premiums were 42 per cent higher at £19.4m (£13.6m), while
single premiums were over 40 per cent higher at £9.6m (£6.8m).  The large gains
were recorded in countries with strong economies such as Australia.

A mixed pattern of life and pensions business is reported by the Clerical,
Medical and General Life Assurance Society with annual premiums dropping
slightly from £22.7m to £22.3m, and single premiums rising by 11 per cent from
£15.8m to £17.6m.

The decline came in the pensions market where group annual premiums dropped 12
per cent from £16.7m to £14.8m and self-employed pension annual premiums by 20
per cent from £500,000 to £400,000.  The Society's life business had a good year
with annual premiums jumping 29 per cent from £5.3m to a record £6.8m.

The pensions market was much stronger in single premiums with group pension
premiums up by 9 per cent to £14.6m, self-employed premiums up by 27 per cent to
£2.9m and directors' pension premiums 25 per cent higher at £4.5m.

Total funds in the Society's Pension Fund Management -- a segregated investment
management service for pension schemes -- increased by 30 per cent to £130m.
The Society has now launched a managed fund investment service for pension
schemes as from the beginning of the year, aimed primarily at those funds
seeking separate management from that given in the insured scheme, but too small
for the segregated service.  There is a choice of two funds -- a mixed fund and
a cash fund.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1793 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

13% rise in new premiums at Norwich Union and reversionary bonus rates are
increased

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 19

LENGTH: 527 words


HIGHER RATES of reversionary bonus have been declared for 1981 by the Norwich
Union Insurance Group, one of the largest mutual life companies in the UK.

The rate for individual life and endowment contracts is raised by 10p to £4.60
per cent of the sum assured and attaching bonuses.  The rate for contracts taken
out before 1965 is increased by 50p to £7.50 per cent of the sum assured for
endowments, and to £8.50 per cent of the sum assured for whole life contracts.

However, the company is maintaining the terminal bonus rates at the levels to
which it was raised last July -- the scale ranging from £40 per £1,000 of the
sum assured for contracts taken out in 1977 to a maximum of £2,270 per £1,000
for contracts effected in 1931 or earlier.

The rate for self-employed pension contracts is lifted 15p to £5.75 per cent of
the basic benefit and attaching bonuses, with the terminal bonus scale kept at
the level fixed the previous July.

Sun Alliance and London Assurance Company, a member of the Sun Alliance
Insurance Group, is also keeping its bonus rate unchanged for 1981 on individual
life policies, at £4 per cent of the sum assured and £6 per cent of attaching
bonuses.  It is, however, increasing the rate on its with profit pension
contracts to £4 per cent of the basic benefit and £6.25 per cent of attaching
bonuses from £3.85 and £6 per cent respectively.

The company has also substantially increased its Capital bonus rates paid on
claims arising in 1982.  The new scale ranges from £2.40 per £1,000 of basic
benefit after 10 years in force to a maximum of £15 per £1,000 for 40 or more
years in force.  The previous scale ran from £1.60 to £12.50 per £1,000.

Scottish Amicable is increasing its rates of interim reversionary bonus, ahead
of the full declaration for 1981 which will be announced at the end of March.

On the main individual life contracts, the rate is lifted 10p to £4.50 per cent
of the sum assured and £5.50 per cent of attaching bonuses.  On the second
series Flexidowment, the basic rate is improved 10p to £4.20 per cent of the sum
assured, while the rate applied to attaching bonuses is improved 15p to £6.50
per cent.

The rates for Flexipension and Superannuation (Second Series) are increased by
20p to £4.60 per cent of the basic benefit and £7.10 per cent of attaching
bonuses.  On group policies the rate is lifted 20p to £5.50 per cent on the
benefit secured.

The company is however keeping its terminal bonus rate unchanged at the levels
announced last October.

Higher reversionary bonuses have been declared for 1981 by the Medical Sickness
Society on its life and pensions business.  For life policies the rate is lifted
25p to £5.25 per cent of the sum assured and attaching bonuses.  However, the
terminal bonus rate is maintained at 25 per cent of all existing bonuses.

On personal persion contracts taken out from April 1977, the reversionary bonus
rate is increased 50p to £6.50 per cent compound.  But the vesting bonus rates
are lowered by 2 percentage points to 63 per cent at age 60, 53 per cent at ago
65 and 43 per cent at age 70.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1794 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Mersey Docks further payment

BYLINE: BY RAY MAUGHAN

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 19

LENGTH: 497 words


The Mersey Docks and Harbour Company is to pay a further 2p per £1 unit to
holders of the subordinated unsecured loan stock.

The payment, which will be made following publication of the accounts this
summer, brings the total redemption so far to 10p per £1 unit at a cost of just
over £2m.  The loan stock was issued in 1974 in accordance with the capital
reconstruction scheme whose provisions required that all net proceeds of land
sales and part of any profits be paid into a redemption fund for distribution to
stock holders.

Faced with falling volume and the consequent need to make costly severance
payments, Mersey Docks has been losing heavily in recen tyears.  In the nine
years to 1980, the company had lost some £26m largely as a result of redundancy
bills.  In the first half of last year it incurred a further deficit of £2.74m.

But the price of the stock units has fluctuated wildly since 1974 and were
quoted yesterday at 21p against a low for last year of 6 3/4p.  The Government
controls 20.67 per cent of the stock, clients of London stock-brokers Greene and
Co and Walter Walker have substantial holdings and Mr David Abell, a board
members and the chairman of Suter Electrical, is another major holder.

The disposals effected last year and those expected in 1982 stem from the land
vested last June in the Merseyside Development Corporation (MDC) for which the
docks company is now negotiating compensation.

Advance payments for 6.64 acres in Sefton and 19.44 acres in the Wirral, at
£144,000 and £202,500 respectively, have been received representing 90 per cent
of the valuation given to the Corporation by the district valuer.  Mersey Docks
is still locked in negotiations for compensation for 400 acres of land in
Liverpool South Docks.  The resultant proceeds, however, will not, under the
terms of the loan stock deed, be payable before 1983.

Opinions vary considerably as to the final settlement of the South Docks
valuation.  "There'll be a riot if the board agree to 10p per stock unit -- or a
little above £2m -- for the 400 acres," says one investor.  Top estimates give a
possible redemption sum of 30p-35p for South Docks.

Relations between the Mersey Docks board and the advisory committee appointed to
supervise the loan stock redemption have been strained in the past by the
question of rental income.  Stock holders have pressed for disposals wherever
possible or for the distribution of net rents where land has been retained.

The powers given by the Government for compulsory purchase by the MDC have
resolved the dispute, or the large part of it, in stock holders' favour but the
company still holds certain land and properties, such as the Albert warehouses

In the meantime, the Government has insisted that Mersey Docks, like its London
counterpart, achieve a break even position by the end of this year.  In return
the ceiling on financial aid to both ports will be raised from £200m to £360m.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1795 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Anglo restores Minorco stake

BYLINE: BY KENNETH MARSTON, MINING EDITOR

SECTION: SECTION II; Companies and Markets; UK Company News; Mining News; Pg. 20

LENGTH: 184 words


THE MAJOR shareholders in the Bermuda-based Minerals and Resources Corporation
(Minorco) have now restored the level of their holdings following a temporary
small reduction which followed a recent placing of Minorco shares.

Consequently, Anglo American Corporation of South Africa now has 42 per cent of
Minorco, De Beers has 23 per cent and Charter just on 10 per cent.

The restoration of the respective holdings stems from the recently announced
deal whereby Minorco has issued 3.8m shares to a joint holding company in
exchange for a 25 per cent stake in the latter.  The remaining 75 per cent is
held by Anglo American and De Beers.

This holding company was formed to take some £115m (£60m) of mining assets in
Chile, Brazil, Peru and Argentina to be purchased by Anglo American, De Beers
and Minorco from Consolidated Mining and Industries SA.

Meanwhile, Minorco has announced the issue of U.S$60m convertible subordinated
bonds, the proceeds of which are to be used principally for the repayment of
short-term indebtedness.  Details of the issue are reported on Page 19.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1796 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Haoma-North West deal

SECTION: SECTION II; Companies and Markets; UK Company News; Mining News; Pg. 20

LENGTH: 199 words


THE agreed merger of Australia's Haoma Gold Mines and North West Mining has been
extended to January 29 to allow for delays caused by postal strikes in Australia
and the Christmas holidays.

The merger terms are seven Haoma Gold shares for every ten North West Mining.
Acceptances to date total just over 70 per cent.

Included in the merged assets of the two companies are a 49.08 per cent interest
in Strata Oil and an 8.28 per cent holding in Griffin Coal Mining.

Meanwhile, Haoma and North West report that they are currently negotiating to
sell their interests in the jointly-owned Haoma North West Oil and Gas UK.

The latter is involved in a number of UK onshore oil and gas exploration
projects through its membership of a consortium comprising Taylor Woodrow, Rio
Tinto-Zinc and Candecca Resources.

Among the consortium's current exploration projects is the Hatfield Moors No. 1
well in Yorkshire in which Haoma North West Oil has a 13 per cent interest.
This well recently suffered a gas blowout at 1,600 feet and subsequently caught
fire.

A team of American oil and gas well fire-fighting specialists has been brought
in to bring the fire under control.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1797 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

SECTION: SECTION II; Companies and Markets; UK Company News; Round Up; Pg. 20

LENGTH: 93 words


A COPPER smelter with an annual capacity of 50,000 tonnes of blister copper is
to be built at Kota Belud in the east Malaysian State of Sabah. Datuk Harris
Salleh, the state's chief minister said that a tender for the US$152m (£80m)
project had been already called.

The smelter, which will be the first in the country, will take copper ore mined
at the Mamut fields, 112 km from the state capital of Kota Kinabalu.  The Mamut
mine is producing between 25,000 and 30,000 tonnes of blister a year, all of
which is now being refined in Japan.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1798 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

SECTION: SECTION II; Companies and Markets; UK Company News; Round Up; Pg. 20

LENGTH: 59 words


Australia's Hartogen Energy has extended the deadline for acceptance of its
partial bid for the shares of Cluff Oil (Australia) by a fortnight to January
21.  Hartogen is offering to acquire up to 20m contributing shares of Cluff at a
price of 75 cents (44p) cash per share.  Full acceptance would raise Hartogen's
holding in Cluff to 51.2 per cent.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1799 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

SECTION: SECTION II; Companies and Markets; UK Company News; Round Up; Pg. 20

LENGTH: 57 words


South Africa's gold production in November fell to 1,770,758 ounces from
1,815,735 oz in the previous month.  This brings the total for the first 11
months of 1981 to 19,477,313 oz compared with 19,974,596 oz in the same period
of 1980.It thus appears that the total for 1981 will work out at just over 660
tonnes, the lowest since 1959.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1800 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Institutions invest £2.4m in Isis buy-out scheme

BYLINE: BY DUNCAN CAMPBELL-SMITH

SECTION: SECTION II; Companies and Markets; UK Company News; Bids and Deals; Pg.
20

LENGTH: 441 words


TWELVE MAJOR institutional investors have participated in an innovative
management buy-out scheme, investing £2.4m in convertible preference shares for
which M. J. H. Nightingale, the City investment services group, will maintain a
secondary market starting today.

The scheme has assembled a total of £5.8m to finance the purchase of the Isis
group of construction and plant hire businesses from United Dominions Trust.
Five directors of Isis contributed £200,000 and Lloyds Bank provided a £3.3m
term loan.  With the institutions' £2.4m, this has covered the cost of the
acquisition and its expenses.

Lloyds has also provided the group with overdraft facilities of £2.5m.  As a
part of the reorganisation, which was completed on December 31, Isis has also
acquired for £1.7m a large fleet of fork lift trucks from Greenham (Plant Hire).

The equity has been structured to give Mr Lamont Park, Isis's chairman, and his
four colleagues 51 per cent of the businesses, which has been reorganised under
a holding company, Isis Industrial Services.

The dozen institutions include Citicorp Development Capital, the pension funds
of the National Coal Board and the Post Office, Norwich Union, Equitable Life
and Scottish Equitable.  Their preference shares will be paid a dividend of 11
per cent, rising to 15 per cent in the years after 1983, and will be convertible
into ordinary shares from mid-1984.

The Isis group's results have been depressed since 1980, with pre-tax profits
falling to £1.1m in the year to last March, against £2.1m, and £0.6m is forecast
for the year to March 1982.

But the new structure of the group offers management at least three incentives
to do well.  Dividends must be paid on schedule or else the voting arrangements
provide for the preferred shareholders to cast 51 per cent of the votes at the
following AGM.

Second, the conversion terms on the preferred stock will be dictated by the
aggregate profits achieved before March 1984.  The directors could retain as
much as 50.1 per cent of the ordinary equity but could also, in the event of
disappointing profits, see the institutions convert their stock into as much as
90 per cent of the ordinary.

Third, it is intended that the ordinary shares in Isis should also be traded in
a market maintained by M. J. H. Nightingale after 1984.

Nightingale has been making a market in a selection of stocks for about 10
years.  Isis will be the twentieth company it quotes.  Mr Robin Hodgson,
Nightingale's managing director, said it was keen to explore ways of arranging
buy-outs "and this looks like one good pattern for the future."

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1801 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

T. W. Ward answer to RTZ bid

SECTION: SECTION II; Companies and Markets; UK Company News; Bids and Deals; Pg.
20

LENGTH: 318 words


Thos. W. Ward, the industrial holding company, has forecast a strong performance
for its current year in issuing a detailed rejection of the £111m take-over bid
from Rio Tinto-Zinc Corporation and "much higher bid prices which RTZ may have
in mind."

RTZ's present bid, offering 190p cash per Ward share, is due to close on January
8.  Before Christmas, RTZ announced that it had so far received acceptances on
behalf of 2.6 per cent of Ward's shares.

Ward is forecasting a 27 per cent gain in pre-tax profits to £23m, against £18m,
for the year to next September.  Mr Peter Frost, Ward's chairman, also forecasts
in a letter to shareholders that dividends for the current year will rise 41 per
cent to 11p net per share against 7.8p recommended last year.

The forecast is based upon increased pre-tax profits of £5.6m against £2.2m by
the non-construction subsidiaries -- reflecting in particular new iron and steel
markets overseas -- and a 27 per cent pre-tax profits increase, to £9.9m, by the
Ketton and roadstone businesses.

Discussing the contribution to be made by associated companies, Ward says it has
assumed unchanged profits by Tunnel Holdings, the cement company 42 per
cent-owned by Ward.  Tunnel, says Mr Frost, "were unwilling to co-operate" in
the preparation of a 1982 forecast.

Assessing the value of Ward's construction business alone at £60m and its
associated company holdings at £95m, the chairman says: "Even a significant
increase in RTZ's bid would remain inadequate." He concludes that tax
considerations provide RTZ's real motive in pursuing Ward and Tunnel.

Sir Alistair Frame, RTZ's chief executive, said yesterday he thought Ward's
rejection "smacks a little of panic." He said he was surprised that Ward could
produce a forecast for the whole year "at the beginning of the fourth month when
their results for December can hardly be in yet."

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1802 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Paget builds up its stake in Sangers

SECTION: SECTION II; Companies and Markets; UK Company News; Bids and Deals; Pg.
20

LENGTH: 155 words


Paget Agencies, the Bermuda-based vehicle of financier Mr Tom Whyte, former head
of crashed Triumph Investment Trust, and others acting in concert with Paget
have acquired a near-6 per cent stake in Sangers Group from Mr C. Morris.

Following the acquisition, Paget and its associates are the beneficial owners of
1.36m shares (14.32 per cent) in Sangers, the loss-making pharmaceutical and
photographic concern, and those acting in concert are the beneficial owners of
905,000 shares (9.54 per cent).

None of the parties acting in concert with Paget individually hold 5 per cent or
more of the ordinary capital.

Mr Morris only acquired his stake of 563,186 shares on December 23.

Mr Whyte has repeatedly stated that the Sangers shares are "purely an
investment." For the half year to August 1981, Sangers reported a pre-tax loss
of £1.03m compared with a profit of £463,000 in the first half a year earlier.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1803 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Babcock's $17.5m U.S. sale

SECTION: SECTION II; Companies and Markets; UK Company News; Bids and Deals; Pg.
20

LENGTH: 434 words


Babcock International, the UK engineering group, is selling the assets and
business of the Industrial Products Group of its Acco subsidiary to Page-Wilson
Corporation of the U.S. in a deal worth $17.5m.

The Page-Wilson Corporation is a new company owned and operated by Mr J. H.
Maloney and other U.S. investors.  Mr Maloney was, until September 1981, the
president and chief executive officer of Acco, and a director of Babcock
International Inc., the U.S. subsidiary of Babcock International through which
Acco is owned.

The consideration is based on the position as at September 27 1981, subject to
adjustment by the difference between the net asset value of the Industrial
Products Group at that date and at the date of completion, February 1 1982.

Of the total consideration, 85.7 per cent will be payable in cash on completion.
The balance will be satisfied by the issue to Acco of a Page-Wilson loan note,
payable in five equal instalments from February 1, 1986.  The loan note will
bear interest at the fixed rate of 13 per cent per annum from February 1, 1983.

The cash proceeds from the sale will be applied towards the reduction of Babcock
International's dollar borrowings in the U.S.

Mr Maloney resigned from the Babcock group in order to negotiate the
transaction.  He will receive a severance payment of $100,000 together with
$98,396 representing his accrued pension entitlement.  He will own between 65
and 75 per cent of the equity of Page-Wilson with the balance divided between
certain members of the Industrial Products Group.

Commenting on the reasons for the disposal of industrial products group.
Babcock said that each of the four divisions of that group is relatively small
and their respective products and activities are unrelated to the principal
business of Babcock International Inc, which are in the material handling
equipment, chain and cable products, automotive and furniture hardware and
process control instruments and systems.

"None of the divisions of Industrial Products Group is considered to possess the
inherent growth potential necessary to achieve Babcock International's
objectives for the furture development of its interests in North America.
Certain of the divisions of Industrial Products Group have been the subject of
earlier negotiations for disposal, but no transaction was concluded."

For the nine months to September 27, 1981 Industrial Products Group reported
turnover of $36m and profits before interest and taxation of $1.45m.  In its
financial year for 1980 it showed profits of $2.06m compared with $4.57m.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1804 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

GEORGE OLIVER SELLS LEASES

SECTION: SECTION II; Companies and Markets; UK Company News; Bids and Deals; Pg.
20

LENGTH: 97 words


The George Oliver footwear chain has decided to sell to the National Water
Council and leaseback 14 properties in a deal worth £7.8m.

Proceeds from the sale will be used to repay the initial draw-down of £7m of a
three-year unsecured loan organised for the purchase of Hiltons Footwear.  The
leases, each for a 25-year period, have five-yearly rental reviews and will cost
Olivers £306,000 per annum initially.

Olivers' board opted for this agreement in preference to facing the high
interest costs for the repayment of the £7m draw-down on the unsecured facility.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1805 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

KCA explains disposal

SECTION: SECTION II; Companies and Markets; UK Company News; Bids and Deals; Pg.
20

LENGTH: 222 words


"Earnings and reserve projections for Baron were not borne out -- otherwise we
would never have been able to negotiate $4.1m off the purchase price," Mr John
Wilson, managing director of KCA International, said yesterday, to explain why
KCA had disposed of Baron less than a year after acquiring it.

Baron -- which became KCA Oil and Gas Inc -- has now been exchanged for 46 per
cent of a Colorado exploration company known as Bengal Oil and Gas. Bengal's
shares are dealt over the counter in the U.S. and can be traded in London, by
negotiation, under Rule 163 (1) (e).  On December 31 they were traded at 50
cents in New York, valuing KCA's investment in Baron amounted to $11.4m.

Bengal has exploration and production interests in Texas, Colorado, Wyoming,
Ohio, Oklahoma and Pennsylvania, which will be merged with the KCA interests in
Texas and New Mexico.  The enlarged Bengal will continue to develop its existing
leases, and will also buy new acreage.

Mr Wilso said that if Bengal used its shares in such purchases KCA would have to
judge whether to subscribe for extra shares in Bengal and avoid dilution.  He
expected the combined companies would do slightly better than breakeven for
1982, as some rationalisation took place.  Cash flow might be expected to turn
positive in the second half of 1983.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1806 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

CAVLAND ACQUIRES DEPOSIT TAKER

SECTION: SECTION II; Companies and Markets; UK Company News; Bids and Deals; Pg.
20

LENGTH: 55 words


Cavland has announced that it is buying Bootle based licensed deposit takers
Merseyside Finance and Merseyside Facilities.  Cavland of Lymm in Cheshire -- in
which the English Association Development Fund has an investment -- is carrying
out the deal through its Manchester based deposit taker Century Industrial
Services.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1807 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

WESTERN SELECTION AND DEVELOPMENT

SECTION: SECTION II; Companies and Markets; UK Company News; Bids and Deals; Pg.
20

LENGTH: 47 words


Agreement has been reached, subject to contract, whereby Western Selection and
Development will sell its wholly-owned subsidiary British Patent Glazing Company
to Aluminium and Timber Securities.  Sale price will be based on the net asset
value of BPG as at September 30 1981.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1808 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

BOOSEY & HAWKES

SECTION: SECTION II; Companies and Markets; UK Company News; Bids and Deals; Pg.
20

LENGTH: 49 words


Boosey and Hawkes has agreed the disposal of its leasehold interest in 33
Margaret Street.  The acquisition of a headlease for 295 Regent Street, details
of which were announced on June 23, has been completed.

The company has received £4.15m which will be used to reduce borrowing.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1809 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

HALLITE HOLDINGS

SECTION: SECTION II; Companies and Markets; UK Company News; Bids and Deals; Pg.
20

LENGTH: 40 words


Laurie Milbank and Co. has purchased 188,200 ordinary shares in Hallite Holdings
(7.8 per cent) at 200p per share on behalf of General Tire and Rubber Company,
South Africa.  General Tire now holds 686,237 ordinary (28.5 per cent).

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1810 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

PRESTWICH PARKER

SECTION: SECTION II; Companies and Markets; UK Company News; Bids and Deals; Pg.
20

LENGTH: 54 words


Butter Lane Nominees (Manchester) has acquired 165,000 ordinary shares in
Prestwich Parker (Holdings) bringing its total share holding to 280,000 (8.26
per cent).

Butter Lane Nominees is controlled by Mr Jeffrey Rubins, chairman of Prestwich
Parket and thus his beneficial interest rises to 785,000 (23.17 per cent).

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1811 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

WEDGE CHEMICALS

SECTION: SECTION II; Companies and Markets; UK Company News; Bids and Deals; Pg.
20

LENGTH: 40 words


Wedge Chemicals, a new independent trading company specialising in the
distribution of polymers, resins and speciality chemicals, has been formed as a
result of a management "buy back" from Cole Chemicals, a subsidiary of R. H.
Cole.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1812 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

ABI exceeds its forecast

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 20

LENGTH: 388 words


THE FIRST accounts for ABI Holdings show pre-tax profits of £810,325, in excess
of the £750,000 forecast last July.  The comparable taxable figure is given as
£1.24m.  Turnover of this specialty chemical manufacturer has slipped from
£17.39m to £16.22m for the year to June 30 1981.

The improvement in business noted in the April/June quarter, influenced partly
by the lower sterling/dollar exchange rate, continued into the current year,
says Mr Peter Lawrence, the chairman.  Both the main operating subsidiaries have
so far performed as planned, he says.

Demand overseas was stronger than at home, says Mr Lawrence, and the American
and continental companies have been gaining business.  The group now sells about
40 per cent of its turnover overseas.

Bituminous products continued to develop and tonnage sold showed a significant
increase over last year.

The chairman says that a new range of exhaust repair products from Hermetite has
been well received.

It remains company policy to expand overseas through the acquisition of locally
well-established sales companies, says Mr Lawrence.

In the U.S. he says the company was able to turn Dura Commodities round from
losses to profits and Hermetite Products is introducing a complete line of
adhesives to the U.S. market.  Mr Lawrence is confident that this investment
will yield profitable business for the UK company.

In view of the acquisition of 60 per cent of the equity of the group operating
companies, shortly before the 1981 year end, the directors do not propose to pay
an ordinary dividend for 1980-81.

A minority debit of about 40 per cent of the pre-acquisition profits has been
deducted from both 1981 and 1980 figures.  Next year this figure will be
replaced by the interest on long-term bank loans and loan stock.

Trading profit this time was shown slightly lower at £1.01m, compared with
£1.61m.  Interest charges fell from £370,731 to £203,977.  There was a charge
for tax of £271,095, against a credit previously of £7,470.

The adjustment for capital reorganisation was lower at £217,630, compared with
£508,613.

Basic earnings per share emerged much lower at 13.54p (31.61p) and diluted
earnings came out at 9.54p (21.79p).

The shares are traded on the market made by M.J.H. Nightingale and Co.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1813 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

57 companies wound-up

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 20

LENGTH: 127 words


Compulsory winding up orders against 57 companies were made by Mr Justice
Vinelott in the High Court. They were:

Goorji and Co. (London), Game Construction Company, Ezkred Properties, Senfield
Property, Powergable, Hilosur, North East Plastics, Symington (Shop Fitters),
George Ridyard and Son, Poole Factors, Sandhouse Inn.

Cooper's Structural, Redcroft Business Consultants, Sandian, Karnroy, Palshaw.

Wiglime Building, Varaville Engineering, Kalbridge, Blankpalm, Driftmead,
Russell Lunts Leisure Centre.

Russell Lunts Motor Home Centre, Newport Caravan Harbour, Basinghall Trust,
Motebond, EAWA Marine Trade, Whitesquare (UK), Langdale Woodworks.

Gardens One, Semaglade, Frosthire, Anglographic, Finch coral, Dykestar,
Amberbury.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1814 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Record ordinary shares trading

BYLINE: BY NIGEL SPALL



SECTION: Note: This table may be divided, and additional information on a
particular entry may appear on more than one screen.
SECTION II; Companies and Markets; UK Company News; Pg. 20

LENGTH: 591 words


STOCK EXCHANGE trading in 1981 was marked by record business in ordinary shares
which increased by 5.1 per cent to £32.4bn.  However, the number of bargains
transacted in ordinary shares during the year was 3.9m, slightly down on 1980's
4.2m and well below the peak 6.7m recorded in 1972.  The average value per
equity bargain during the year was £8,329, while the FT Turnover index for
ordinary shares in 1981 registered a monthly average of 481.6 against the
previous year's 458.0.

The Financial Times Industrial Ordinary share index closed the year at 530.4 for
a rise of 55.9 points over u9,1, during which it ranged between 446.0 and its
all-time high of 597.3 reached at the end of April.

Turnover in gilt-edged securities in 1981 was down 3.7 per cent on 1980 and the
amount of new Government stock issued fell dramatically to approximately £11bn
compared with the 1980 record of £17.05bn.  The number of bargains transacted in
British Funds was 47,018 lower at 949,487.  The 1981 monthly average of the
Financial Times Turnover index for Government Securities was 515.1 compared with
the 1980 average of 535.0.

December, as usual, saw a sharp drop in trade in all sectors because of seasonal
influences.  The number of business days was the same as the previous month.

Business in gile-edged dropped from November's £17.1bn -- the highest monthly
level since January 1980 -- to £10.8bn.  Trade in short-dated stocks contracted
by £2.8bn to £6.2bn and the number of bargains in gitls was 23,428 down at
62,675.

The FT Turnover index for Government Securities in December was 458.3 compared
with November's 725.5.

Business in ordinary shares also contracted last month, falling by £0.7bn to
£2.1bn.  The year's high of £3.50bn was recorded in April and the low of £2.06bn
in October.

The number of bargains transacted in equities in December fell by 68,591 to
233,889 and the average value per bargain was down by £319 to £8,944.

Turnover in all securities during December fell by £7.2bn to £14.1bn with the FT
Turnover index down from November's 1981 high of 652.4 to 432.3.
                                Value of all
                                  purchases     %     Number     %
                                   & sales      of      of       of
           Category                  £m       total  bargains  total
British Govt. and British
  Govt. Guaranteed:
Short dated (having five years
  or less to run)                     6,208.0   44.0    22,913    7.1
Others                                4,620.0   32.7    39,762   12.4
Irish Government:
Short dated (having five years
  or less to run)                       501.1    3.6     1,967    0.6
Others                                  239.2    1.7     1,971    0.6
UK Local Authority                      317.8    2.3     3,609    1.1
Overseas Government:
Provincial and Municipal                 30.9    0.2       617    0.2
Fixed interest stock pref. and
  prefd. ordinary shares                100.4    0.7    17,377    5.4
Ordinary shares                       2,091.9   14.8   233,889   72.6
Total                                14,109.1  100.0   322,105  100.0
                                Average   Average    Average
                                 value   value per  number of
                                per day   bargain    bargains
           Category                £m        £       per day
British Govt. and British
  Govt. Guaranteed:
Short dated (having five years
  or less to run)                  295.6    270,936      1,091
Others                             220.0    116,187      1,893
Irish Government:
Short dated (having five years
  or less to run)                   23.9    254,764         94
Others                              11.4    121,353         94
UK Local Authority                  15.1     88,071        172
Overseas Government:
Provincial and Municipal             1.5     50,156         29
Fixed interest stock pref, and
  pref. ordinary shares              4.8      5,775        827
Ordinary shares                     99.6      8,944     11,138
Total                            * 671.9   * 43,803   * 15,338




* Average of all securities

LANGUAGE: ENGLISH

GRAPHIC: Graph, no caption

                   Copyright 1982 The Financial Times Limited


                             1815 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Low cost computer power for all

BYLINE: BY LOUISE KEHOE in California; EDITED BY ALAN CANE

SECTION: SECTION II; Companies and Markets; Technology; Pg. 21

LENGTH: 1072 words

HIGHLIGHT: 'Supermicros' move in to oust business mini-computer systems


THE MINICOMPUTER -- the basis of most small business computer systems -- is
being ousted by a new generation of microcomputers.  Built around 16-bit
microprocessors.  These "supermicros" as they are called, promise low cost
computing power for everyone from the one-man business up to departments of
large companies.

Minicomputers are built out of specially designed circuit boards, using several
dozen logic chips.  Microcomputers, on the other hand, are usually based on a
standard microcomputer chip, such as those produced by Intel and Motorola, and
require less additional circuitry.  The software that makes a microcomputer run
is similarly becoming standardised.

Peripherals

Minicomputer makers have designed their own proprietary "operating systems" --
programs that control the basic computer function -- while microcomputer
builders are chosing from one of the standard operating systems available from
software suppliers.

"Supermicros" are beginning to make their appearance in the U.S. Some are
selling to Original Equipment Manufacturers (OEMs) who will build the computer
unit into business systems with keyboards and video screens.  Others come ready
for the user with all the peripherals already in place.

All of them are aimed at the still nebulous "office of the future," in which
computers supposedly will increase the productivity of the white collar worker
and reduce the amount of paper passing from hand to hand.

The supermicros all have several things in common that place them apart from
today's microcomputers.  The most important perhaps, is that they are designed
to be used by more than one person -- usually up to about five people can share
a machine.

Eight-bit microcomputers, immediate predecessors of 16-bit machines perform
poorly when serving three or more users.

Taking multiple use one step further, several of the machines can be converted
to networks.  These networks of machines could link several microcomputers,
maybe a couple of printers, and a larger computer holding a huge data base.

Sixteen-bit processors perform more than twice as fast as the 8-bit micros used
in most personal computers because they can get access to twice as much data per
instruction as an 8-bit machine, and because their internal storage capacity is
higher.  This cuts down on the number of times the system has to swap data
between the internal memory and the disc store.

Sealed

The business versions of the new microprocessors are using a new storage device
called a mini-Winchester disc, a small, hard magnetic disc hermetically sealed
into its own chamber and holding vastly more data than the "floppy" discs
currently in use.

"We can offer minicomputer capability at micro prices," boasts David Jackson,
President of Altos, a San Jose California company that last year sold $21m worth
of small computers for business use." Our introduction of a 16-bit machine
leapfrogs the personal computer companies like Apple and Radio Shack to take on
DEC and Data General," he claims.

The Altos machine will sell to systems integrators for $12,990, when it is
equipped with 512K bytes of built in semiconductor memory and a 10m byte hard
disc data store with floppy disc backup - enough to satisfy most small business
requirements.  Up to eight users can share the processing power of the system by
plugging in additional terminals.  "Most 16-bit minicomputers cost two or three
times as much with the same performance," Jackson claims.

"Microcomputer suppliers are clearly becoming the leaders in bringing the
benefits of new technology to small business and professional applications
traditionally the domain of minicomputer-based small computer systems vendors,"
says Bob Wickham, a vice-president of Vector Graphics, another small business
system vendor.

According to Wickham, one of the chief reasons for the popularity of the
microcomputer based multi-user systems is their software compatibility with the
more than 500,000 CP/M based single user systems now in use.  CP/M is one of the
most widely used microcomputer operating systems used in several popular
personal computers (but not Apple).

CP/M, which is sold by Digital Research, a California software company, has
fuelled the growth of small business systems, agrees Bruce Winer, marketing
manager for development products at Zilos.

Impact

"It has provided a commons operating system base on which applications can be
built," he says.  The new version of CP/M for 16-bit machines will lallow more
than 1,000 business applications programs already available to run on more
powerful microcomputers.

Another company that is making an impact on the business microcomputer market is
Conversent Technology of Santa Clara, California.  Conversent has signed
marketing agreements with Burroughs and NCR which will use the Conversent
microcomputers as the basis of their new ranges of small business systems.
Three Rivers Company of Natick, Massachusetts, has licensed Britain's ICL to
manufacture its super-micro built around a Motorola 68000 microprocessor.

At the low cost end of the business computer market, Fortune Systems, a new
company based in San Carlos, California, will sell its first product -- a
desktop microcomputer -- through computer retail stores.

The Fortune 32:16 is built around a Motorola 68000 16-bit microprocessor.  The
system looks much like a personal computer.  But according to the company, it
can handle all the requirements of a one-man office or can be expanded or
networked for larger offices.

Fortune has adopted the UNIX operating system -- a system designed by Bell Labs
and used in several minicomputer systems.The basic unit, which includes a floppy
disk drive, keyboard and video display, will sell in the U.S. for under $5,000.
Extras include a Winchester disk, and extra internal memory.  Software available
covers the standard business applications.

Market

Fortune and Altos are among the companies that will shake up the small business
computer market, according to Jean Yates, a market analyst at Gnostic Concepts
of California.  She predicts that sales of personal and desk top computers
priced at under $6,000 will total $5bn by 1985.

The market for higher performance machines costing anything from $6,000 up to
$60,000 (for multiple terminal installations) will reach $7bn over the same
period she calculates.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1816 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Light pluses via cables for thyristor switching

BYLINE: EDITED BY ALAN CANE

SECTION: SECTION II; Companies and Markets; Technology; Pg. 21

LENGTH: 175 words


A THYRISTOR that is switched by means of light pulses carried over fibre optic
cables rather than the conventional gate current has been developed by General
Electric Company of the U.S. and promises to lower the cost of operating high
voltage direct current power transmission lines.

The design, developed under the sponsorship of the Electric Power Research
Institute, allows the device to carry large currents while itself consuming very
little power -- reducing overall losses significantly.

Based on thin, three inch diameter slices of silicon only 0.004 inch thick, the
device has built-in limiting resistors to prevent the rise of damaging currents
that can occur when only a small region of the thyristor is activated -- which
can occur with the weak signal of a light pulse.

The device may cut the cost of AC/DC conversion equipment needed at the two ends
of a HVDC line, thus making it economical to use much shorter lines of this
kind.  At the moment they have to be more than about 500 miles a length
according to GE.

LANGUAGE: ENGLISH

GRAPHIC: Picture, Dr Victor Temple, a physicist and inventor of the circular
patterned silicon wafer inspects an example at GEC of the U.S.

                   Copyright 1982 The Financial Times Limited


                             1817 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Solid state pressure transducer element

BYLINE: EDITED BY ALAN CANE

SECTION: SECTION II; Companies and Markets; Technology; Pg. 21

LENGTH: 166 words


MOTOROLA has reached the sampling stage with a new solid state pressure
transducing element and a complete operational module, both likely to be the
subject of a high volume, low cost production.

The basic element uses a semiconductor strain gauge device operating on the
piezoresistive principle. It gives direct voltage as a function of pressure and
needs no closely matched associated components or Wheatstone bridge
arrangements.

It is claimed that the gauge is highly accurate and stable, giving an extremely
linear hysteresis -- free output voltage.

Three forms of the development are to be made available: the discrete
uncompensated element, a printed board assembly that gives a high level
temperature compensated output, and a module that can be used in harsh
environments such as that under the bonnet of a car.

At 3 volts excitation, the output of the transducer element is typically 60
millivolts for a one atmosphere pressure differential.  More on 01-902 8836.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1818 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Six-colour process

BYLINE: EDITED BY ALAN CANE

SECTION: SECTION II; Companies and Markets; Technology; Pg. 21

LENGTH: 50 words


SIMON-VK of Cheadleheath, Cheshire, has developed a six colour flexograph
process for printing laminates and ovenable paperboards.  The unit is able to
print four faces on one side and two on the other or six faces on one side.
More from Simon, PO Box 31, Stockport, Cheshire (061-428 3600).

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1819 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Floppy diskettes mailing cover

BYLINE: EDITED BY ALAN CANE

SECTION: SECTION II; Companies and Markets; Technology; Pg. 21

LENGTH: 67 words


WESPAC has introduced a reusable mailing cover for 5 1/4 inch and standard 8
inch diskettes known as the "Wespac Floppy Mailer." It is available in multiples
of 10 at 48 pence for the 8 inch version and 35p for the 5 1/4 inch one.

Orders this month and next, the company says, include a free sample for orders
of 10 or more.  Wespac is at 154, Shoreditch High Street, London (01-729 1170).

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1820 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Bandwidth method sheds decimal points

BYLINE: GEOFFREY CHARLISH; EDITED BY ALAN CANE

SECTION: SECTION II; Companies and Markets; Technology; Pg. 21

LENGTH: 312 words


STEMMING FROM a decision made at the 1979 World Administrative Radio Conference
in Geneva, a new method of specifying the category and bandwidth of radio
transmissions came into effect on January 1.

Apart from reducing these two parameters to capital letters and numerals only,
the system also does away with decimal points and in general reduces the
possibility of error and ambiguity.

The aim is also to facilitate the keying of such data into modern frequency
management systems based on computers.  However, the carrier frequency itself
will continue to be stated in the usual way.

A four character code is used for bandwidth of which three are numerals
(yielding three significant figures).  Letters are used to denote units: H for
hertz, K for kilohertz, M for megahertz and G for gigahertz.

The letter is placed where the decimal point would have been.  Thus, 0.2Hz in
the old style becomes H200 in the new, or 24 MHz for example, becomes 24MO.

Three mandatory symbols are to be used to describe the class of transmission.
The first describes the type of modulation. the second describes the nature of
the signals modulating the carrier (number of modulation channels, whether they
are analogue or digital) while the third indicates the type of information
(telegraphy, facsimile, data, speech or video).

To make things easier, Rediffusion Radio Systems has put all the new data on to
a waterproof chart that can be hung on the wall.

It was, however, compiled a little too late to include another change expected
to be announced soon by the Home Office.  In future, the power of a radio
station, it is understood, will not be stated in watts, kilowatts or megawatts,
but will be given in decibels referred to one watt.

The chart is available free from Rediffusion Radio Systems, Broomhill Road,
Wandsworth SW18 (01-874 7281).

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1821 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Sony wins £1.5m NatWest cassette order

BYLINE: EDITED BY ALAN CANE

SECTION: SECTION II; Companies and Markets; Technology; Pg. 21

LENGTH: 49 words


SONY HAS won a contract worth £1.5m for 1,000 video cassette recorders from
National Westminster Bank.  It claims this is the largest single order placed
for this type of equipment.

The bank intends to use video as the major method of communications for its
63,000 employees in the UK.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1822 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Dow off 17.22 at close

SECTION: SECTION II; Companies and Markets; World Stock Markets; Pg. 22

LENGTH: 359 words


WALL STREET stocks slid sharply lower in an atmosphere of uncertainty over the
direction of interest rates.

The Dow Jones Industrial Average closed off 17.22, at 865.30, its largest
one-day drop since August 24 when it fell 20.46.  Declines overwhelmed advances
by about 1,200 to 400 and volume swelled to some 48m shares from 36.76m.

THE COMBINATION of a rise in the weekly U.S. money supply figures and bearish
projections on interest rates from Salomon Brothers economist Henry Kaufman sent
Wall Street sharply lower yesterday morning.

The Dow Jones Industrial Average weakened 9.80 to 872.72 at 1 pm and the NYSE
All Common Index fell 84 cents to $70.36, while declines outpaced rises by a
five-to-two ratio.  Trading volume swelled to 33.51m shares from Monday's 1 pm
level of 25.41m.

Analysts said the unexpected rise of $1.4bn in the closelywatched M1-B measure
of the money supply fuelled concern that interest rates will not decline over
the near-term.

Adding to these worries were Kaufman's projections that the recent downward
trend in interest rates would probably reverse before mid-year and that the
dollar amount in the weekly Treasury Bill auctions would increase substantially.

Larry Wachtel, of Bache Group, said investors are overreacting to the money
supply figures and Kaufman's projections.

Oil stocks, among the stronger groups during the last half of 1981, fell victim
to selling. Phillips Petroleum lost $1 to $38 3/4, Tenneco 3/4 to $2 3/4, Sun 2
1/2 to $90, Texas International 1 7/8 to $34 7/8, Cities Service 1 7/8 to $43
3/8 and Superior 1 1/8 to $35.

Marathon Oil fell $3 to $79 1/2.  Mobil has asked the Supreme Court to block
U.S. Steel's purchase of Marathon stock.  American Can dipped 1 3/4 to $33 7/8
on news that James River is to buy some of its operations for $420m.  James
River was off 1/2 at $19 1/4.

Among Blue Chips, volume leader IBM eased 3/4 to $57 1/2, Eastman Kodak $1 to
$72, Merck $1 to $84 1/2, Allied 1/2 to $44 5/8, General Electric 3/4 to $57 5/8
and Du Pont 1/2 to $37 1/2.

THE AMERICAN SE Market Value Index retreated 3.05 to 318.36.  Volume 2.68m
shares.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1823 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Canada

SECTION: SECTION II; Companies and Markets; World Stock Markets; Pg. 22

LENGTH: 36 words


Most sectors showed a downward bias in moderate early trading.  The Toronto
Composite Index declined 19.2 to 1,837.1, Oil and Gas 45.8 to 3,667.9 and Golds
4.0 to 2,881.5.  In Montreal, Banks fell 6.13 to 348.75.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1824 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Tokyo

SECTION: SECTION II; Companies and Markets; World Stock Markets; Pg. 22

LENGTH: 389 words


The market was inclined to gain fresh ground initially, but subsequently
declined to end mixed to lower on the day following a moderate business.  Later
sentiment was undermined by news of a U.S. dumping decision against Nippon
Electric.

The Nikkei-Dow Jones Average was just 0.50 up on the day at 7,719.34, while the
Tokyo SE index lost 0.74 at 571.64 and falls finally outnumbered rises by 324 to
248 on the First Market.  Volume 240m shares (150m).

Brokers said some prices had been well ahead until news of the U.S. Commerce
Department dumping decision hit the market and sent Nippon Electric and other
Communications shares falling.  The Commerce Department determined, for the
first time, that a Japanese high-technology electronic product was being
marketed in the U.S. at an unfairly low price.  Although the decision is
provisional and the U.S. International Trade Commission has to consider the
charges, the reports out of Washington had a substantial impact on the Tokyo
stock market, according to brokers.

Nippon Electronic, listed at the top in a private poll for this year's most
promising shares, spurted ahead Y24 to Y834 on Monday and was widely expected to
continue to surge.  However the stock ended Y8 down yesterday at Y826.  A broker
added that "the amount involved (in the dumping dispute) wasn't that big, but
the news threw cold water on the market.

Pioneer Electronic, Y1.720, and TDK Electronic, Y3,590, finished a net Y40 and
Y30 weaker respectively, while Victor fell Y110 to Y2.740, but Sony held a gain
of Y40 at Y3,900.

Kyoto Ceramic drew feverish investor attention, triggered bt a nationally
televised test on Monday night of its ceramic engine mounted on a car Although
it is generally expected to be four to five more years before commercial
production of cars with ceramic engines becomes possible, the test nevertheless
stirred up widespread interest.  At one time, Koyto Ceramic was Y100 higher but
then eased to end the day with a Y40 gain at Y3,950.  Toshiba Ceramic advanced
Y51 to Y1,020 in sympathy.

Sheet Glass rose Y13 to Y385, Okuma Machinery Y25 to Y776, Kyowa Hakko Y14 to
Y632, Yasukawa Electric Y9 to Y680 and Sumitomo Chemical Y8 to Y181, but Canon
shed Y15 to Y925, Nissan Motor Y10 to Y825, Hitachi Shipbuilding Y7 to Y220 and
Honda Motor Y9 to Y812.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1825 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Germany

SECTION: SECTION II; Companies and Markets; World Stock Markets; Pg. 22

LENGTH: 114 words


The previous day's buying enthusiasm waned and stocks mostly retreated, with
dealers reporting some squarting of positions which were built up by
professional traders on Monday. The Commerzbank index, which rose 7.0 on Monday,
dipped 8.4 to 673.8.

Stock market investors were also deterred by a downturn on the Domestic Bond
market after a good performance on Monday.

Prices of Public Authority Loans fell by as much as 50 pfennigs.  The Bundesbank
bought DM 51.1m of paper in contrast to the previous day's sales of 50m.
Dealers cited the sharply lower U.S. credit market close and yesterday's firmer
U.S. dollar as reasons for the turnround in the Bond market.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1826 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Paris

SECTION: SECTION II; Companies and Markets; World Stock Markets; Pg. 22

LENGTH: 29 words


Shares recovered most of the ground lost on Monday when operators liquidated
positions taken up before the end of the year to benefit from Monory law tax
concessions.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1827 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Hong Kong

SECTION: SECTION II; Companies and Markets; World Stock Markets; Pg. 22

LENGTH: 133 words


Trading remained very quiet yesterday, but leading shares and some Utilities
tended to pick up a little.  The Hang Seng index, after retreating 29 points on
Monday, recovered 10.13 to 1,386.78. Turnover on the four exchanges totalled
HK$133.95m, compared with the previous day's HK$124.68m.

The firmer trend was partially in sympathy with the overnight Wall Street
improvement, and some institutional support was noted, but was mainly technical.
However, general market sentiment was mixed, and private speculators were
generally adopting a wait-and-see attitude.

HK Gas looked an exceptionally strong spot in Utilities with an advance of
HK$2.75 at HK$32.25.  China Gas put on 20 cents to HK$13.20, but HK Telephone,
which lost HK$1.45 on Monday, was 30 cents lower at HK$29.50.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1828 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Australia

SECTION: SECTION II; Companies and Markets; World Stock Markets; Pg. 22

LENGTH: 65 words


Activity stayed at a low ebb with prices again closing narrowly mixed.

Oils, however, continued to show a firmer bias, where changed.  Beach Petroleum
hardened 5 cents more to A$1.70 on news that the Bass Strait well, Sperm Whale
No 1, had encountered hydrocarbons. Santos added 10 cents at A$7.00, but share
prices of other partners in the Jackson No 1 oil were barely changed.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1829 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Johannesburg

SECTION: SECTION II; Companies and Markets; World Stock Markets; Pg. 22

LENGTH: 30 words


The recovery in the Bullion price to above the $400 level left Gold shares with
a firmer bias after another light trade.

Among Heavyweights, Randfontein rose 150 cents to R74

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1830 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Rise in farm land prices

BYLINE: By Our Commodities Staff

SECTION: SECTION II; Companies and Markets; Commodities and Agriculture; Pg. 23

LENGTH: 90 words


ENGLISH FARM land prices turned higher towards the end of last year, according
to figures published by the Ministry of Agriculture yesterday.

The average price for reported sales totalling 10,300 hectares in the
September-November period was £4,251 a hectare, up from £4,027 in the
August-October quarter and the highest level since June 1980.

The weighted price, which allows for the area and sizegroup composition of the
sample, was up £94 to £4,084 a hectare while the land price index rose from 205
to 210 (1973=100).

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1831 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

The consequences of getting tough

BYLINE: BY NANCY DUNNE IN WASHINGTON

SECTION: SECTION II; Companies and Markets; Commodities and Agriculture; U.S.
Grain Sales; Pg. 23

LENGTH: 774 words


WHILE FEARS are intensifying here of a de facto U.S. embargo on grain sales to
the Soviet Union, Mr John Block, Secretary of Agriculture, is still pitching
more grain to the Russians.

In an interview here last week, Mr Block denied that the suspension of
U.S.-Soviet negotiations for a long-term grain agreement and the expiry of the
U.S.-Soviet maritime agreement last Thursday will have an effect on the grain
trade between the two superpowers.

The moves were announced by President Reagan last Tuesday, along with five other
economic sanctions in retaliation for what he said was the Kremlin's "direct
responsibility" for the imposition of martial law in Poland.

"The atmosphere is not very good to hold talks," Mr Block said, "but a long term
agreement is not essential.  We want to sell grain to the Soviets.  We hope
they'll buy more."

In spite of the secretary's professed optimism, farm associations and grains
traders are saying that the President's actions will create a de facto embargo
of Soviet agricultural purchases.

"The Soviet Union is being increasingly pressed to diversify its sources of
supply," says Miss Margie Williams, of the National Association of Wheat
Growers.  "Our allies have indicated that they will not co-operate with the
President's efforts, so three will be supply."

The expiry of the maritime agreement under which grain sold to the Soviets was
carried on Russian, American and third party ships, one-third each, will cause
further difficulties.  Without a maritime agreement, the longshoremen may refuse
to load Soviet ships, and the Russians may be discouraged from sending in their
ships.

The U.S. has offered the Soviets 23m tonnes of grains in the year beginning
October 1 1981.  As of December 17, the Soviet Union had bought 10.9m tonnes,
costing about $1.5bn, but uncertainties about the possibility of a total trade
embargo may hinder future business.

One large international grain dealer in Washington said: "We're very cautious
about doing business with anybody now unless we see the colour of their money
first."

Worries about foreign grain sales are growing just when American farmers can
afford them least.  Huge harvests, high interest rates and inflation have cause
widespread pronouncements of a farm depression.

"For the moment, agriculture is in a depressed mode," said Secretary Mr Block.
"Right now prices are low, but traditionally, if you have a low price, grain
moves out faster."

Prices paid to farmers for raw products fell 3.1 per cent in December, and for
the fifth straight month averaged below year-earlier levels, according to
Department of Agriculture statistics.  For the first time in nearly half a
century the monthly farm price index did not rise at all last year.

Even worse, the index measuring farmer buying power has sunk to its lowest level
since 1932.  USDA economists are saying that net farm income could fall another
$1bn to $3bn in 1982.

Mr Block has offered little hope for government relief beyond the comparatively
skimpy Farm Bill, which barely passed congress last month.  Under the new
measure, a loan price floor of $3.55 per bushel has been set for wheat and $2.55
has been set as the maize price floor.  In December wheat averaged $3.65 a
bushel (and was still falling) compared to $4.22 last year at this time, and
maize plummeted to $2.27 a bushel, 92 cents below its December 1981 level.

The National Association of Wheat Growers is demanding an increase in the wheat
loan to at least $4 per bushel because farmers "stand to suffery greatly as
unilateral sanctions are applied to the USSR while other nations continue their
economic and trade relations with the Soviets."

Since taking office, Mr Block has made efforts to promote foreign grain sales
and to convince the EEC to discontinue export subsidies of agricultural
products.

"We have been trying to make the European Community understand that we are
serious," he said.  While he plans to continue discussions with the EEC, he is
also looking at a range of retaliatory options, including American export
subsidies.

Mr Block expressed great frustration about the huge American agricultural
surplus at a time when there is hunger elsewhere in the world.  "But who's going
to get it to them?  Who's going to pay for it?  The American farmer has to be
paid."

He said the Far East holds the greatest potential for U.S. agricultural exports.
"But I don't pretend to believe these markets are going to explode.

"I have a great amount of concern about what the future holds," he said.  "We'll
have to live through uncertain times."

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1832 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

New tomato variety aids island's crop

BYLINE: By Our Own Correspondent

SECTION: SECTION II; Companies and Markets; Commodities and Agriculture; Pg. 23

LENGTH: 170 words


PRODUCTION OF tomatoes in Guernsey this year is not expected to drop drastically
even though the area of glasshouses used for the crop is being reduced from the
1981 figure of 420 acres to 330 acres.  This is due to a massive swing by local
growers to the new high-yielding Dawn (E4884) variety.

The results of a census announced yesterday by the island's horticultural
committee show that the Dawn variety will account this year for 88 per cent of
the area under tomato cultivation.

The committee says that, because of the increased productivity of this new
variety and the larger area of modern glass, the crop in the coming year could
be as high as 5.7m six-kilo trays compared with 6.5m trays in 1981.

Last year's figure represented an average of nearly 93 tonnes of fruit per acre,
but many growers using the Dawn variety topped 130 tonnes per acre and some
recorded 160 tonnes.

The horticultural committee says it is hoped that more island growers will
achieve the 130 tonne level this year.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1833 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Tara mine move boosts lead/zinc

BYLINE: BY ROY HODSON

SECTION: SECTION II; Companies and Markets; Commodities and Agriculture; Pg. 23

LENGTH: 290 words


BOTH lead and zinc gained ground in London trading yesterday as markets reacted
to the decision by Tara Mines to put the Navan lead-zinc mine in the Irish
Republic in a care-and-maintenance basis indefinitely.

After a six-month close-down because of a strike by the craftsmen at the mine,
the company's latest pay offer was rejected yesterday by the workforce. Tara is
an important supplier of lead and zinc concentrates to European smelters.  But
in the present depressed state of the matals market there is no urgent need for
the Tara output.

On the London Metal Exchange zinc finished at £454.50 a tonne for cash, a rise
of £7 on the day.  Lead finished at £356 a tonne for cash -- £4.50 up.

European reaction to the prospect of the Navan mine being out of production
indefinitely was summed up by Pressag and Metallgesellschaft, the main West
German zinc producers.  Both companies said last night they did not expect to
encounter more than small direct problems as a result of the decision.  However,
there could be some indirect problems affecting the European metals industries.
Spot concentrate prices could rise because of increased demand from smelters
whit have been using Tara supplies.

Tara Mines declared force majeure on all lead-zinc concentrates shipments on
July 6 1981 after the craftsmen walked out and forced the company to lay off the
miners.

Zinc is still sufficiently plentiful in Europe during a period of poor demand
for some German producers to be offering the metal at price level slightly below
the producer price.  The zinc market is likely to remain quiet for some months
to come.  The United States market is no longer strong enough to have an impact
upon European trading.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1834 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

EEC farm policy changes urged

BYLINE: BY JOHN CHERRINGTON, AGRICULTURE CORRESPONDENT

SECTION: SECTION II; Companies and Markets; Commodities and Agriculture; Pg. 23

LENGTH: 464 words


SHOULD BRITAIN leave the EEC, a Minister of Agriculture would have to ask the
Treasury for £2,000m a year to maintain prices and production as they are in
Britain today.  This was the message delivered by Christopher Tugendhat,
Vice-President of the EEC Commission at the Oxford farming conference yesterday.
He thought that in this instance the response would be very unsatisfactory to
farmers and in addition the British food market would be subject to subsidised
competition from their former partners.

Nevertheless, Mr Tugendhat said that EEC expenditure must be controlled.  Output
was exceeding demand.  The first attempt was the co-responsibility levy on milk
and this must continue until supply and demand became equal.  The Commission's
aim of bringing EEC cereal prices into line with those on the world markets
still heald good.  Cereals had done well since Britain joined the EEC and prices
had risen much faster than they had for livestock products.

Although the rate of increasing expenditure on agriculture had been falling due
to higher world prices it still took up too much of the Community's total
budget.  He discounted the fears expressed by British farmers about the national
aids enjoyed by farmers in other countries by saying that all countries accused
the others of the same crime.  He hoped that with a common sense approach all
round national aids could be eliminated.

This theme was taken up by David Evans, chief economic adviser to the NFU.  He
deplored the proliferation of national aids, particularly by the French, who
were disguising their latest package under various social headings.  If this
trend continued, it would destroy completely the philosophy of free competition
written into the Treaty of Rome.

He did not think that the Community should only support prices up to a certain
limit and that support would then be given by individual governments.  This
would favour the richer countries and make farmers in the poorer ones less well
off.  Britain would by reason of the smaller contribution of farmers to the GDP
be particularly badly affected.

Mr Nicholas Horsley, chairman of Northern Foods insisted that the Treaty of Rome
was out of date.  It had been negotiated he said in a context of shortage and
starvation and not of perpetually increasing production.  Either the CAP should
be re-written or abandoned.  He instanced the futility of increasing the
production of things like butter, sugar, eggs, and bread while consumption of
these items was actually falling.  In fact he said the only items of increasing
consumption were alcoholic liquors.  He thought that the future market would be
much more in the direction of convenience foods and manufactured products than
anyone at present even dreamed about.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1835 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

US influences affect markets but Gilts and equity leaders reduce falls after UK
banking statistics

SECTION: SECTION II; Companies and Markets; London Stock Exchange; Pg. 24

LENGTH: 440 words

          Account Dealing Dates
                  Option
 * First    Declara-      Last    Account
Dealings      tions     Dealings    Day
Dec 23    Jan 7         Jan 8     Jan 18
Jan 11    Jan 21        Jan 22    Feb 1
Jan 25    Feb 11        Feb 12    Feb 22




* "New time" dealings may take place from 9.30 am two business days earlier.

U.S. influences in the shape of the latest unexpected sharp increase in money
growth, which led to weakness in the bond market there, and a leading analyst's
prediction that American long-term interest rates would this year threaten their
1981 peaks had a marked effect on London stock markets yesterday.  Both main
investment sectors displayed nervousness with Government securities falling a
point and leading shares sustaining double-figure losses prior to rallying late
following receipt of the UK December banking statistics.

The Gilt-edged market seemed especially uncertain.  After opening easier,
dealers encountered nervous selling which took its toll at both ends of the
market.  Many longer-dated issues soon showed falls of a point and the short
tap, Exchequer 14 per cent 1986, was nearly that much down at one stage.  No
rallying tendency developed until the 2.30 pm announcement of December's rise of
only 1/4 per cent in sterling M3.  This was much smaller than expected and
longer quotations immediately recovered around half of the earlier falls, but
the shorts made only a tentative improvement and closed with losses extending to
3/4.

Still faced with the worrying industrial relations outlook and expectations that
Wall Street would react adversely to the surprise jump in money growth,
announced after Monday's close, leading equities also weakened.  Popular
Electricals led the decline and GEC fell to 800p before closing a mere 3 down on
balance at 808p.  Oils, too, were sold initially by investors wary of the
downward pressures on crude oil prices, but in this sector also final losses
were negligible.

The FT Industrial Ordinary share index measured the continued easiness with a
fall of 8.1 at the three counts from noon until 2.00 pm.  An hour later, after
release of the UK banking figures, it recorded a decline of 4.5 and this was
finally trimmed to 4.2 at the close of 518.1; confirmation of sharply lower New
York values in yesterday's early trade had little or no impact on sentiment.

Demand for Traded options continued to improve and 1,957 deals were arranged
yesterday -- 1,342 calls and 615 puts.  British Petroleum recorded 345 calls and
the same number of puts while Imperial returned to the fore with 284 calls
completed, 111 in the February 70's and 100 in the February 80's.

LANGUAGE: ENGLISH

GRAPHIC: Graph, no caption

                   Copyright 1982 The Financial Times Limited


                             1836 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Banks dull

SECTION: SECTION II; Companies and Markets; London Stock Exchange; Pg. 24

LENGTH: 248 words


Reflecting the liquidation of speculative positions in the absence of bid
developments, Bank of Scotland fell 10 to 498p, after 495p.  Awaiting the
Monopolies Commission's decision on the rival bids from Hongkong and Shanghai
and Standard Chartered, Royal Bank of Scotland shed 9 to 186p; SC gave up 13 to
663p and HK a couple of pence to 129p. Home banks continued to drift lower on
sporadic offerings and lack of support.  Midland lost 8 to 340p and Barclays 7
to 445p; the major clearers have agreed to buy, for £51m, the International
Commodities Clearing House, the clearing house for London's soft commodity
markets.  Irish issues came on offer with Bank of Ireland down 10 at 250p and
Allied Irish 6 off at 94p.  Discounts eased in sympathy with gilts; Cater Allen
declined 10 to 305p as did Union, to 400p.  Elsewhere, Guinness Peat eased to
85p before closing a net 2 cheaper at 88p on reports that the Stock Exchange is
studying the movements in the shares before the announcement that a partial
offer might be made for the company.

Fears that damage caused by recent storms could have cost the insurance market
£50m prompted nervous selling of Composites which retreated from the start.
Price closed a few pence above the day's lowest, but Sun Alliance still
sustained a fall of 14 to 816p, after 812p, while Eagle Star shed 7 to 318p and
General Accident 8 to 306p.  GRE declined 8 to 286p as did Phoenix, to 216p.
Elsewhere, Pearl, at 388p, also lost 8.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1837 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Mothercare easier

SECTION: SECTION II; Companies and Markets; London Stock Exchange; Pg. 24

LENGTH: 624 words


Breweries continued to drift lower for want of attention.  Sporadic support was
evident at the lower levels, but the leaders still finished with modest falls.
Whitbread, 89p, and Scottish and Newcastle, 50p, eased around 2 apiece.  Wines
and Spirits also closed a shade easier for choice.  Arthur Bell finished 6 lower
at 148p, after 146p, following adverse Press comment.  Support was also lacking
for Luis Gordon, 3 off at 29p.

A few pence easier for most of the session in the absence of support, leading
Buildings picked up in line with the general trend and closed virtually
unchanged.  Housebuilders Barratt Developments closed 5 cheaper at 210p;
Standard Life Assurance now has a 5.2 per cent stake in the company.  Fresh
interest was was shown in Wiggins Group which put on 3 to a peak of 90p, while
the appearance of a single buyer in a market short of stock lifted Feb
International 7 to 88p.

ICI, down to 284p at one stage on light selling, rallied to close unchanged on
balance at 288p.  Fisons finished just a penny cheaper at 152p, after 148p.

Leading Stores turned dull, although some finished a shade above the day's
worst.  Mothercare came under renewed pressure awaiting next week's
shareholders' meeting to vote on the proposed merger with Habitat and gave up 5
more to 155p; Habitat recovered from an earlier 110p to close unchanged at 113p.
A reasonable two-way trade developed in selected secondary issues.  Cornell
Dresses reacted to revived profit-taking and closed 8 lower at 155p.  Polly Peck
fell 10 to 345p, while Wearwell eased a couple of pence to 54p with the nil-paid
a similar amount off at 4p premium.  Sellers also held sway in Tern-Consulate, 4
down at 55p, but H. Samuel, interim results due next Monday, added a couple of
pence to 102p.

Dull conditions prevailed in Electricals where the leaders were particularly
vulnerable to renewed selling.  However, a late rally helped them to close well
above the day's lowest with GEC finishing only a few pence off at 808p, after
800p.  Plessey lost 4 more to 353p, after 350p, while Racal dipped 7 to 428p,
after 425p; the latter's interim figures are due next Sednesday.  Thorn EMI,
with half-yearly results scheduled for tomorrow week, eased a couple of pence to
455p.  Elsewhere, Quest Automation lost 7 to 133p awaiting today's first-half
results.  Ward and Goldstone shed 6 to 106p but, against the trend, George
Scholes put on 8 to 248p.

Leading Engineers rallied in places, Tubes, 122p, and Hawker, 320p, both closing
without alteration after touching 118p and 316p respectively.  Renewed
offerings, however, left Vickers 6 cheaper for a two-day fall of 11 to 144p.
Elsewhere, the trend was again to lower levels, but Anderson Strathclyde, an old
take-over favourite, encountered speculative demand and closed 4 higher at 94p,
after 95p.  Yarrow, 300p up 10, and Vosper, 5 to the good at 140p, also moved
against the trend, while Hallite Holdings, the subject of an abortive cash offer
worth 190p per share from General Tire, rose 6 to 192p following news that the
latter had acquired a 7.8 per cent stake at 200p per share in Hallite to bring
its holding to 28.5 per cent.  United Engineering, in contrast, met fresh
offerings and gave up 7 more to 253p.  Falls of 4 were marked against,
Pegler-Hattersley, 176p, B. Elliott, 90p, and Staveley, 216p.Disappointing
interim results left Howden Group 2 cheaper at 150p, while Redman Heenan closed
a penny lower at 46p after the full report.  Birmid remained on offer at 23p,
down 1 1/2p, and Brockhouse gave up 3 to 29p.

Leading Foods generally met light selling and eased a shade.  Elsewhere, revived
speculative interest in a thin market lifted Bernard Matthews 10 to 110p.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1838 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

T. W. Ward better

SECTION: SECTION II; Companies and Markets; London Stock Exchange; Pg. 24

LENGTH: 389 words


T. W. Ward rose 8 to 218p in response to the chairman's profits and dividend
forecast contained in the defence document firmly rejecting RTZ's 190p per share
bid.  Elsewhere in miscellaneous industrials, Highgate and Job jumped 8 to 54p
on speculative buying fuelled by hopes that Panavision Windows Ltd. and the
associate Pickles of Paisley might launch a bid.  Reports of a mini-boom in
washing machine sales helped Hoover A to put on 4 to 84p, while Halma gained 3
to 87p in response to the better-than-expected interim results.  Euroflame
rallied 2 further to 16p, after 20p, and Silentnight edged forward a penny to
89p, the latter on the announcement that the group is investing £5m. in new
factories.  Ahead of tomorrow's interim figures, Peter Black gave up 8 to 215p,
while British Aerospace came on offer at 198p, down 6.  Recently excited by the
Kuwaiti Investment Office's increased stake in the company to 6.75m shares,
Chubb reacted 3 on profit-taking to 99p.  Pilkington, 8 easier at 255p, became
the biggest casualty of the quietly dull leaders.

Recently firm Pleasurama closed 5 cheaper at 305p, after 300p, the increased
annual profits and proposed 100 per cent scrip issue discounted.  Elsewhere in
the Leisure sector, Horizon Travel, a good market of late on reports of
increased holiday bookings, reacted to 275p on profit-taking before closing a
net off at 278p.  Fading bid hopes clipped 4 from Black and Edgington to 48p.
Among Television issues, Scottish TV A shed 3 to 77p and Trident gave up a penny
to 68p, the latter following shareholders' approval of the £14.6m Playboy deal.

The uncertain outlook for interest rates inhibited interest in Properties and
the leaders closed with modest losses, where changed Attention elsewhere was
centred on situation stocks.  London Shop Property closed 2 cheaper at 135p,
after 134p, following the 135p per share bid for the company from Rosehaugh,
unchanged at 250p, after 240p.  Greycoat Estates, down 22 on Monday on
consideration of the company's share exchange offer for City Offices, rallied 7
to 147p; the latter held at 122p.  Berkeley Hambro, in receipt of a paper bid
from Town and City, shed 8 to 332p with T & C 3/4 easier at 31p.Carlton Real
Estates were quoted at 16 1/2p ex the rights issue with the new nil-paid shares
at 1p premium.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1839 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Oils above worst

SECTION: SECTION II; Companies and Markets; London Stock Exchange; Pg. 24

LENGTH: 147 words


Oils remained friendless.  Early offerilngs and lack of support prompted fresh
dullness, but a subsequent rally left most quotations above the day's worst. BP
ended 6 off at 302p, after 300p, while Shell, the subject of a recent broker's
favourable circular, closed unaltered at 394p, after 388p.  Lasmo fell 13 to
405p and Ultramar 10 to 477p, while Burmah ended 4 cheaper at 120p.  Unsettled
by the sale of the Baron Oil and Gas Company following disappointing results
from the subsidiary, KCA International fell 6 more to 122p.  Reflecting recent
adverse Press mention, Double Eagle weakened 8 to 40p and Warrior Resources 10
to the same price.

Among Financials, Mercantile House turned reactionary ahead of the interim
figures due later in the month and eased 15 to 423p.  Majedie lost 5 to 85p, but
Energy Finance moved against the trend with a rise of 3 to 45p.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1840 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Golds firmer

SECTION: SECTION II; Companies and Markets; London Stock Exchange; Pg. 24

LENGTH: 211 words


South African Golds put on a much brighter performance, boosted by yesterday's
$10 rise in the bullion price which closed at $405.5 an ounce.

The sharemarket opened on a steady note, encountered light profit-taking around
mid-day, but quickly rallied to close at the day's best levels in the wake of
American support in the afterhours' trade. The Gold Mines index gained 0.7 to
302.0.

London Financials fell sharply at the outset, depressed by the downturn in UK
equities, but also staged a recovery in the late trade.

Rio Tinto-Zinc were finally unaltered at 430p, having fallen to 423p in early
trading, while the Bermuda-registered Minorco gave up 8 to 392p.

An otherwise quiet Australian section was featured by Gold Mines of Kalgoorlie,
8 firmer at 368p, and Peko - Wallsend, 10 up at 330p, both following the gains
in precious metal prices.

In the oil and gas issues, Beach Petroleum added 3 for a two-day gain of 8 to
98p reflecting reumours that hydrocarbons have been encountered in the Sperm
Whale No. 1 well in the Bass Strait.

Elsewhere, Tara Mines eased 5 to 495p on news that workers at the Navan
zinc/lead mine have rejected the company's wage offer; the mine has been closed
for six months because of the wage dispute.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1841 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Managing director for Chivers Hartley

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 28

LENGTH: 36 words


Mr John Morrison has been appointed managing director of CHIVERS HARTLEY, the
preserves subsidiary of the tea and foods division of Cadbury Schweppes.  He
moves from Jeyes, also a subsidiary of Cadbury Schweppes.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1842 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 28

LENGTH: 69 words


D.M. SLADE AND CO. commenced trading on January 4.  The directors are Mr Martin
Slade, Mrs Valerie Slade and Mr Derek Thornton. The company will trade in
association with the Kininmonth Group of Lloyd's broking companies.  Mr Slade
will be joining the board of Kininmonth Management, Kininmonth Marine, and
Kininmonth Risk Management.  Mr Thornton is appointed a director of Kininmonth
Risk Management.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1843 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 28

LENGTH: 15 words


Lord Windlesham, has been appointed to the board of the GATEWAY BUILDING
SOCIETY.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1844 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 28

LENGTH: 107 words


Shell International Chemical Company has made changes in the organisation of its
international trading activities.  From January 1 a newly-created division
called SHELL CHEMICAL INTERNATIONAL TRADING COMPANY (SCITCO) will take over
responsibility for international sales of petrochemicals.  The president of
SCITCO will be Mr A. N. Binder and the following vice-presidents are appointed:
Mr E. L. M. Delboy (industrial chemicals trading); Mr R. Land (organic chemicals
trading); Mr J. E. Lane (polymers trading); Mr C. N. Weller (East Europe and
Middle East trading); Mr M. P. Lippner (supply and distribution); Mr P. Broek
(finance).

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1845 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 28

LENGTH: 26 words


Mr Michael Butler and Mr Andrew Stoppani have been appointed directors of
MACLAINE WATSON AND CO., the London subsidiary of Drexel Burnham Lambert, U.S.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1846 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 28

LENGTH: 28 words


Mr R. W. Goodfellow, Mr D. D. Grant, Mr R. L. Margot and Mr J. P. Monaghan will
be joining the partnership of BUCKMASTER AND MOORE, stockbrokers, on January 8.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1847 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 28

LENGTH: 52 words


Mr R. E. Cole has been appointed to the board of CAMERON RICHARD AND SMITH
INSURANCE SERVICES following mutual agreement with Seascope Holdings regarding
termination of his former contract.  Mr John S. Bennett has also joined the
board.Mr Cole has also been appointed a director of Ropner Insurance Services.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1848 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 28

LENGTH: 22 words


Mr A. C. Rix has been appointed marketing director of BONAR AND FLOTEX, carpet
subsidiary of the Low and Bonar Group, Dundee.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1849 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 28

LENGTH: 34 words


Mr Simon Everard is the new vice-chairman of the LEICESTER BUILDING SOCIETY,
succeeding Mr Roy Kemp who has retired.Mr Everard is chairman of Ellis and
Everard, Leicester-based chemical merchants.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1850 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 28

LENGTH: 20 words


WHEELOCK MARITIME INTERNATIONAL, part of the Wheelock Marden Group, has
appointed Mr C. B. M. Lloyd as a director.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1851 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 28

LENGTH: 20 words


DRAYTON MONTAGU PORTFOLIO MANAGEMENT has appointed Mr Clive Blomfield-Smith and
Mr Nicholas L. Taylor to the board.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1852 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 28

LENGTH: 14 words


Mr Nigel Keen has been appointed an executive director of EUROPEAN BANKING.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1853 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 28

LENGTH: 31 words


Mr I. Darke and Mr D. Middleton have been appointed directors of Turner and
Newall's subsidiary, BIP VINYLS.  Mr Darke has been marketing manager and Mr
Middleton works manager.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1854 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 28

LENGTH: 35 words


Dr Laurence M. Smith retired from MONTEDISON UK at the end of 1981, and has been
appointed for 1982 to a visiting professorship in the department of business
studies in The Queen's University of Belfast.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1855 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 28

LENGTH: 37 words


CHAMBERLAIN PHIPPS has appointed Mr I. H. Phillipps as a non-executive director.
Until July 1981 Mr Phillipps was a member of the board of Tube Investments and
chairman and managing director of TI Raleigh Industries.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1856 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

SECTION: SECTION II; Companies and Markets; Appointments; Pg. 28

LENGTH: 61 words


On January 27, the chairman of J. A. DEVENISH AND CO., Mr Anthony Ledger Hill,
will retire, and be appointed president of the company.  The new chairman will
be Devenish's deputy chairman, Mr Richard Hargreaves who joined the company as a
director in February 1980.  He recently retired as an executive director from
the main board of the Savoy Hotel Group.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1857 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

$ & £ firm

SECTION: SECTION II; Companies and Markets; Currencies, Money and Gold; Pg. 28

LENGTH: 548 words


Dollar rose against other major currencies yesterday on higher Eurodollar
interest rates.  The upward trend in Eurodollar and U.S. money market interest
rates followed the larger than expected rise in the weekly money supply figures.
Comments by Dr Henry Kaufman, of Salomon Brothers, about firmer U.S. rates this
year also lent support to the dollar.

Sterling was generally firm, despite easing against the strong dollar.  Reaction
was favourable to the provisional money supply figures released in the
afternoon.

European currencies showed little change, with the French franc at the top of
the European Monetary System, and the Belgian franc remaining the weakest
member.

DOLLAR -- Trade - weighted index (Bank of England) 107.2 against 106.4 on Monday
and 110.6 six months ago.  Three-month Treasury bills 11.60 per cent (11.34 per
cent six months ago).  Annual inflation rate 9.6 per cent (10.2 per cent
previous month).  Unemployment 8.4 per cent (8.0 per cent previous month). --
The dollar rose to DM 2.2610 from DM 2.2410 against the D-mark; to FFr 5.7375
from FFr 5.6850 against the French franc; to SwFr 1.8110 from SwFr 1.7910 in
terms of the Swiss franc; and to Y219.50 from Y219.00 against the Japanese yen.

STERLING -- Trade-weighted index 91.4 against 91.4 at noon, 91.6 opening and
91.3 previous close (93.2 six months ago).  Three-month interbank 15 11/16 per
cent (13 1/16 per cent six months ago).  Annual inflation rate 12 per cent (11.7
per cent previous month).  Unemployment 11.3 per cent (11.1 per cent previous
month) -- The pound opened at its highest level of the day, at $1.9265-1.9275,
and declined to a general level of $1.92 during the morning.  Demand for the
dollar from New York pushed sterling down to $1.9115-1.9125 in the afternoon,
and it closed at $1.9120-1.0130, a fall of 1.40 cents on the day.  The pound
rose to DM 4.3275 from DM 4.32; to FFr 10.9750 from FFr 10.95; and to SwFr
3.4650 from SwFr 3.525, but eased to Y240 from Y422.

D-MARK -- EMS member (second weakest).  Trade-weighted index 122.1 against 122.7
on Monday and 115.7 six months ago.  Three-month interbank 10.825 per cent
(12.95 per cent six months ago).  Annual inflation 6.3 per cent (6.6 per cent
previous month).  Unemployment 6.4 per cent (5.9 per cent previous month) -- The
D-Mark recorded mixed changes against its EMS partners at the Frankfurt fixing,
gaining ground against the French franc and Irish punt, but weakening in terms
of the Belgian franc and Dutch guilder.  The dollar rose to DM 2.2540 from DM
2.2338, without any intervention by the Bundesbank, and sterling improved to DM
4.3280 from DM 4.3160.  The Swiss franc was unchanged at DM 1.2500.

FRENCH FRANC -- EMS member (strongest).  Trade-weighted index 80.5 per cent
against 81.0 on Monday and 82.4 six months ago.  Three-month interbank 15 1/16
per cent (17 7/8 per cent six months ago).  Annual inflation 14.3 per cent (14.1
per cent previous month).  Unemployment 1.846m (1.818m previous month) -- The
franc weakened against all major currencies at the Paris fixing, but remained
strongest member of the EMS.  The two weakest members, the Belgian franc and
D-mark rose to FFr 14.9040 per 100 Belgian francs from FFr 14.8650 and to FFr
2.5360 from FFr 2.5328 respectively.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1858 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Revised shortage

SECTION: SECTION II; Companies and Markets; Currencies, Money and Gold; Money
Markets; Pg. 28

LENGTH: 405 words

HIGHLIGHT: London clearing bank base lending rates 14 1/2 per cent (since
December 4)


A shortage of day to day funds was forecast by the Bank of England in the London
money market yesterday but the amount was adjusted upwards twice during the day.
The Bank gave an early figure of -- £100m, with bills maturing in official hands
and a net take up of Treasury bills accounting for £150m and Exchequer
transactions a further £100m.  These were offset by a fall in the note
circulation of £75m.  The shortage was later revised to £150m and the
authorities gave assistance in the morning totalling £171m.  This comprised
purchases of £7m of Treasury bills in band 1 (up to 14 days) at 14 3/8 per cent,
£13m of local authority bills at 14 3/8 per cent and £50m of eligible bank bills
at 14 3/8 per cent.  In band 2 (15-33 days) it bought £101m of eligible bank
bills at 14 3/8-14 1/2 per cent.

The revised shortage of £150m was further amended, without taking into account
the morning's help, to £250m and the Bank gave further help in the afternoon,
making purchases of £90m to give a grand total of £261m.  The afternoon help
comprised purchases of £3m of eligible bank bills in band 1 at 14 3/8 per cent,
£67m of eligible bank bills in band 2 at 14 3/8-14 13/32 per cent and £20m of
Treasury bills in band 4 (64-91 days) at 14 1/2 per cent.

Discount houses were paying up to 14 1/4 per cent for secured call loans with
later balances taken down to 10 per cent.  In the interbank market overnight
money opened at 14 3/4-15 per cent and eased to 14 1/2-14 3/4 per cent.  After
the bank's initial help rates slipped to 14-14 1/4 per cent but came back
briefly on the revised forecast to 14 1/2-14 3/4 per cent before falling away to
8-10 per cent.  Late balances were taken up to 14 per cent.  Period rates tended
to ease slightly reflecting a favourable reaction to the latest set of UK
banking figures.

In Brussels the Belgian National Bank announced a further cut in short-term
Treasury bill rates following a similar move on Monday.  The rates yesterday on
one, two and three-month Treasury bills were all cut by half a percentage point
to 15 1/2 per cent, 15 1/4 per cent and 15 1/4 per cent respectively.  Interest
rates have fallen in several European countries recently following a softer
tendency in U.S. interest rates, and the Belgian authorities have so far been
able to reduce domestic rates without putting pressure on the Belgian franc
within the European Monetary System.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1859 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Firmer trend

SECTION: SECTION II; Companies and Markets; Currencies, Money and Gold; Gold;
Pg. 28

LENGTH: 135 words


Gold rose $10 to $405-406 in the London bullion market yesterday.  It opened at
$400 1/2-$401 1/2, and was fixed at $400.75 in the morning and $403.50 in the
afternoon. The metal touched a low point of $400-401, and a peak of $406 1/2-407
1/2.

In Paris the 12 1/2 kilo gold bar was fixed at FFr 74,500 per kilo ($404.89 per
ounce) in the afternoon, compared with FFr 74,500 ($405.75) in the morning, and
FFr 73,500 ($404.00) Monday afternoon.

In Frankfurt the 12 1/2 kilo bar was fixed at DM 29,210 per kilo ($403.00 per
ounce), against DM 28,800 ($400.99) previously, and closed at $403.404, compared
with $394 1/2-395 1/2.

In Luxembourg the 12 1/2 kilo bar was fixed at the equivalent of $400.50 per
ounce, compared with $399.90.

In Zurich gold finished at $402.405, against $394-397.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1860 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

APE STOCK SWITCH

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 20

LENGTH: 207 words


Holders of Amalgamated Power Engineering (APE) 6 per cent Unsecured loan stock
have been called to an extraordinary meeting on January 26 to consider a switch
into Northern Engineering Industries (NEI) stock following NEI's takeover of APE
last autumn.

Proposed terms are £1 of NEI 7 per cent unsecured loan stock 2000-05, for every
£1 of 6 per cent APE stock.

Eagle Star Insurance, as trustees to the APE 6 per cent stock, have not raised
any objections to the proposals being presented.

Banner Publications, E. P. Allam and Co., Nottingham Greyhound Stadium,
Wholesale Supplies (Kent), S.B. Assurance and Insurance Consultants.

Cray Valley Joinery Company, Caygill Pryor and Co., D. J. Matthews (Joinery
Design), Goodisong, Compline, Edony Wines and Spirits.

L.A. Video (Productions), A.G.S. Commercials and Cars (Doncaster), Surgevale,
Travella Engineering, Compass, Kamasa Tools, Soke Electrical, Netstal,
Fivemanor, Barjaq Freight Services.

A compulsory winding-up order made on December 5 against Gradeville was
rescinded and the petition dismissed by consent.

A compulsory winding-up order made on December 14 against Charlestown Diving and
Marine was rescinded and the petition dismissed by consent.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1861 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

GAELIC OIL

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 20

LENGTH: 51 words


Dealings in the shares of Gaelic Oil, the Dublin-based exploration company that
raised £1.5m in a rights issue last July, are to take place under Stock Exchange
Rule 163 (3) without the need to seek the prior permission of the Council.

Until now, the shares have been trade under Rule 163 >2>.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1862 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

MATTHEW BROWN

SECTION: SECTION II; Companies and Markets; UK Company News; Pg. 20

LENGTH: 17 words


Matthew Brown's rights issue has been taken up as to 84 per cent.  The balance
has been placed.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1863 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Share Stakes

SECTION: SECTION II; Pg. 16

LENGTH: 14 words


John Laing -- E. H. Ballard, director, has acquired 20,000 ordinary shares.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1864 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Share Stakes

SECTION: SECTION II; Pg. 16

LENGTH: 17 words


Sphere Investment Trust -- Standard Life Assurance now holds 2,245,000 shares
(7.56 per cent).

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1865 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Share Stakes

SECTION: SECTION II; Pg. 16

LENGTH: 24 words


Crest Nicholson -- R. St. J. H. Lewis, director, has acquired 20,000 ordinary
shares and as a trustee has disposed of 4,200 ordinary shares.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1866 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Share Stakes

SECTION: SECTION II; Pg. 16

LENGTH: 20 words


Federated Land -- J. H. P. Meyer, director, has disposed of 1.6m shares and now
holds 800,000 shares (7.3 per cent).

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1867 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Share Stakes

SECTION: SECTION II; Pg. 16

LENGTH: 20 words


Berwick Timpo -- Jove Investmen Trust on December 23 bought 200,000 shares
making holding 450,000 (8 per cent).

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1868 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Share Stakes

SECTION: SECTION II; Pg. 16

LENGTH: 18 words


Garton Engineering -- On December 21 Primrose Hill Securities purchased 40,000
ordinary shares at 21p.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1869 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Share Stakes

SECTION: SECTION II; Pg. 16

LENGTH: 30 words


Britannic Assurance -- Following upon John A. Jefferson becoming first named
executor in a deceased estate, he now has a non-beneficial interest in 33,890
ordinary stock units.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1870 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Share Stakes

SECTION: SECTION II; Pg. 16

LENGTH: 20 words


Barratt Developments -- Standard Life Assurance controls, through various
holdings, 3,843,970 shares (5.2 per cent).

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1871 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Share Stakes

SECTION: SECTION II; Pg. 16

LENGTH: 23 words


Caravans International -- S. Alper, chairman, has increased his holding to
1,018,513 ordinary shares by purchase of 25,000 at 17p.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1872 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Share Stakes

SECTION: SECTION II; Pg. 16

LENGTH: 45 words


Bazaloni Holdings -- On December 22 Jatel sold to Closerule, its holding of
22,500 shares in Bazaloni (8.99 per cent) at £7 per share.  Also Walter Duncan
and Goodricke sold to Closerule its holding of 74,940 shares in Bazaloni (29.95
per cent) at £7 per share.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1873 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Share Stakes

SECTION: SECTION II; Pg. 16

LENGTH: 18 words


Wm. Low and Co. -- Mr I. W. Stewart, director, has disposed of 20,076 ordinary
shares, non-beneficial.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1874 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Share Stakes

SECTION: SECTION II; Pg. 16

LENGTH: 60 words


Parkland Textile (Holdings) -- Paul Henry Thorarinn Hanson, director, as trustee
acquired 43,204 "A" ordinary (0.80 per cent). Total holding as trustee now
171,860 "A" ordinary (3.19 per cent).  Sir Richard Denby, director, as trustee
acquired 43,204 "A" ordinary (0.80 per cent).  Total holding as trustee now
427,678 "A" ordinary (7.9 per cent).

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1875 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Share Stakes

SECTION: SECTION II; Pg. 16

LENGTH: 21 words


Sterling Industries -- Peter Neville Buckley, director, on December 29 1981
disposed of as an executor, 50,000 ordinary.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1876 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

Share Stakes

SECTION: SECTION II; Pg. 16

LENGTH: 23 words


James Finlay -- John Swire and Sons acquired 135,000 ordinary stock units and
now holds 17,313,822 ordinary units (29,997 per cent).

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1877 of 2315 DOCUMENTS

                        Financial Times (London,England)

                           January 6, 1982, Wednesday

BOARD MEETINGS

SECTION: SECTION II; UK Company News; Pg. 19

LENGTH: 155 words


The following companies have notified dates of board meetings to the Stock
Exchange.  Such meetings are usually held for the purpose of considering
dividends. Official indications are not available as to whether dividends are
interims or finals and the subdivisions shown below are based mainly on last
year's timetable.

TODAY

Interims: Brown and Tawse, City of London Trust, Quest Automation, Technology
Investment Trust.

Final: McCorquodale.

FUTURE DATES
  Interims --
Allied Colloids                         Jan 13
Burt Boulton                            Feb 5
Fitch Lovell                            Jan 28
Newmark (Louis)                         Jan 21
Regional Properties                     Feb 1
Restmor                                 Jan 18
Samuel (H.)                             Jan 11
Thorn EMI                               Jan 14
Wigfall (Henry)                         Jan 15
  Finals --
Associated Newspapers                   Jan 14
Bett Bros.                              Jan 12
Claverhouse Investment Trust            Jan 11
Derby Trust                             Jan 21
Ley's Foundries & Engineering           Jan 8
M and G Dual Trust                      Jan 13
Oakwood                                 Jan 12

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1878 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

EEC warns Poles of sanctions for violation of rights

BYLINE: BY JOHN WYLES, COMMON MARKET CORRESPONDENT, IN BRUSSELS

SECTION: SECTION I; Pg. 1

LENGTH: 729 words

HIGHLIGHT: The European Community yesterday accused the Polish military regime
of "violations of the most elementary human and citizen's rights," and warned of
economic sanctions against Poland and commercial reprisals against the Soviet
Union.


After protracted and sometimes difficult discussions, EEC foreign ministers
issued a 12-paragraph communique demonstrating that the Ten are substantially
closing ranks on the Polish question.

West Germany, for example, shifted its position and now tends to favour tough
action if the Jaruzelski Government does not move - in the words of the
communique - to "end as soon as possible the state of martial law, to release
those arrested and to restore a general dialogue with the Church and
Solidarity."

Although they felt the meeting had broadly achieved as much as was possible,
some ministers left Brussels last night disappointed that a plan to despatch
Belgium's Mr Leo Tindemans, the new President of the EEC Council of Ministers to
Warsaw and Moscow had been blocked by France and Greece.

This Community approach was set out in a five-point programme

* "A solemn warning" to the Warsaw Pact against any intervention in Poland.

* "Close and positive consultations" with the U.S. and other Western governments
"to avoid any step which would compromise" President Reagan's sanctions against
the Soviet Union.

* An attempt to secure condemnation of the Polish crackdown as "a grave
violation" of the Helsinki Final Act at the Conference on Security and
Co-operation in Europe in Madrid.  EEC foreign ministers will attend the
conference when it reopens on February 9.

* An attempt at the UN to secure denunciations of violations of human rights and
acts of violence."

* Moves to suspend credits, economic assistance and cut-price food sales to
Poland.  In addition, the EEC will consider reducing the volume of its imports
from the Soviet Union.

Official U.S. reaction to yesterday's decisions will be given by the Secretary
of State, Mr Alexander Haig, at a special meeting next Monday of Nato foreign
ministers.

The Ten agreed yesterday that they must avoid undermining U.S. sanctions against
the Soviet Union, but said they needed more information on how they would work
before they could offer concrete assurances.

In particular West Germany and France are adamant that the U.S. sanctions must
not hold up development of the Soviet gas pipeline to Western Europe - a
possibility because Washington is suspending licences for the sale of U.S.
equipment for the pipeline.

Several ministers acknowledged yesterday that the divisions in the Western
Alliance must be healed and healed quickly, but complained that the U.S. had
again put Europe on the defensive by taking an initiative without proper
consultation.

As far as their own possible sanctions are concerned, the foreign ministers were
greatly interested by a European Commission suggestion that new tariffs and
quantitative restrictions could be imposed to reduce imports from the Soviet
Union.  However, it was agreed that these could apply only to the 30 per cent of
the trade which is not energy supplies.

A decision on such a move and on formally suspending economic and food aid to
Poland could well be taken by the foreign ministers when they meet again here on
January 25.  Their communique yesterday did not spell out the circumstances in
which action would be taken against both Poland and the Soviet Union.

But it is understood that the majority of member states are now prepared to move
by the end of the month if there is no genuine progress towards restoring human
rights in Poland in the meantime.

They may also agree by the end of the month on the proposed Tindemans mission.
This was strongly supported yesterday by Britain's Lord Carrington and West
Germany's Herr Hans Dietrich Genscher, but foundered largely because of the
objections of France's M Claude Cheysson.

M Cheysson revealed that Paris had been invited to send an emissary to Warsaw
but had declined to do so because Warsaw had refused access to Solidarity
leaders.  However, M Cheysson was willing to discuss the idea again and EEC
foreign ministers are expected to return to it next Monday at the Nato meeting.

M Cheysson laid heavy stress last night on Europe's first warning to the Eastern
bloc that its political system was endangering public confidence "in the
possibility of co-operative links with the East."

The Eastern European system was proving unable, said the Ten, "to accept the
modifications necessary to meet the legitimate aspirations of the people."

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1879 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Warsaw bars political role for Solidarity

BYLINE: BY ANTHONY ROBINSON IN LONDON

SECTION: SECTION I; Pg. 1

LENGTH: 610 words


POLAND's Solidarity trade union will not be allowed to continue as an
independent, self-governing movement, the official press indicated yesterday.

Trybuna Ludu, the Communist Party newspaper, and Zolnierz Wolnosci, the army
publication, said there could be no place in future for Solidarity in the form
in which it existed before December 13 when the military took over, declared
martial law and suspended all union activity.

Both underlined the authorities' belief that there would be a future for a trade
union of sorts provided it obeyed the new law on trade unions now being drafted
by parliament.

There are no indications of the form of the new law.  The implication of the
articles is that the authorities will lay down strict guidelines allowing them
to maintain full control of any new union.

Before Solidarity was formed in September, 1980, the only unions tolerated in
Poland were run by members of the ruling Communist Party.

Trybuna Ludu said the main points to be considered in answering the question
about Solidarity's future were the fact that the Communist Party had a
responsibility for everything that happened in Poland while recognising that the
selfmanaging trade union movement was created by the will of the working class.

The struggle over Solidarity was not ended by the declaration of martial law,
however, and the opponent in this struggle remained the "anti-Socialist
political opposition," the paper added.

While the Communist Party newspaper announced its intention to break the
political influence wielded by Solidarity's advisers and supporters, a
clandestine Solidarity bulletin reaching the West denounced Poland's military
rulers for turning the country into "one huge labour camp." "Poland is now a
country where fear and constant insecurity prevail," it added.

The bulletin, which took a week to reach the West, said that 14 coal miners were
killed at the Manifest Lipcowy mine in Jastrzebie, Silesia when security forces
moved in to break up a strike.  There has been no mention of this in the
official media which have admitted only seven deaths at the Wujek coalmine, also
in Silesia, and the death of a woman during violent demonstrations in Gdansk.

The Solidarity bulletin also reported increasing resistance within the army to
the repressive role it has been called on to undertake.  It claimed that army
and militia units had clashed while hundreds of army officers had turned in
their Communist Party cards.

Giving details of alleged unrest in the armed forces, it said that all officers
of one unit at Niepoldnice, near Krakow, had been arrested while police and army
units had fought each other at Bydgoszcz, scene of militia violence against
Solidarity activists in March last year.  It also reported that a soldier had
shot dead his commanding officer in one unnamed northern garrison in retaliation
for the death of miners at the Wujek colliery.

On a more positive note, the bulletin stated that detainees were now being
released in small numbers by the authorities.  Those released are said to speak
of harsh treatment in the early days of martial law but of being better fed and
looked after subsequently.  One former internee is reported to have said he
spent seven days at various detention centres and was released after a four-hour
interview during which he was asked, but refused, to sign a "loyalty pledge."

This report is in line with similar reports from all over Poland of workers,
intellectuals and Solidarity members being asked to sign pledges of loyalty to
the new regime and of loss of employment and purges among many of those refusing
to sign.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1880 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

$ falls in Europe as rates ease

BYLINE: By David Marsh in London and David Lascelles in New York

SECTION: SECTION I; Pg. 1

LENGTH: 392 words


LOWER Eurodollar interest rates pushed the dollar down generally on the European
foreign exchanges yesterday, with sterling closing in London up 1.65 cents from
its preholiday close at $1.9265.

Signs of tighter conditions on the New York money markets later in the day,
however, limited the fall in Eurodollar rates and gave the U.S. currency some
support towards the close of trading in Europe.

Short-term UK money market rates are still being kept firm by large shortages in
the banking system as the start of the heavy taxpaying season gets under way.

Although some sterling interest rates followed U.S. rates lower yesterday, the
decline will have to go significantly further before there is a chance of
British banks cutting their base rates, presently pegged at 14 1/2 per cent.

At one point yesterday, sterling rose towards $1.94 - its highest against the
dollar for a month.  It also climbed against continental European currencies,
closing in London at DM 4.32 compared with the previous rate on Thursday of DM
4.29.

Its trade weighted index computed by the Bank of England rose to 91.3 from 90.9
on Thursday.

Sterling is profiting from the nearly 2 1/2 percentage point gap between U.S.
and UK interest rates.  Additionally, the foreign exchanges are now less
affected by events in Poland, which helped strengthen dollar before Christmas.

On the London money market, easier U.S. credit helped three-month interbank
rates drop to about 15 5/8 per cent from about 15 5/8 per cent on Thursday.
Seven day rates - which are crucial for the determination of base rates -
however rose slightly to 14 15/16 per cent from 14 3/4 per cent, prompted by a
large shortage of short-term funds.

Three-month Eurodollar rates in London finished 1/4 point lower than Thursday at
13 3/8 per cent.  Early on in the morning, rates had dipped as low as 13 1/16
per cent. but rose again in the afternoon as the key federal funds inter-bank
rate in New York moved up above 13 per cent.

Although this unnerved Wall Street and added to the general uncertainty about
the immediate course of U.S. interest rates, traders said some year-end
technical factors could still be at work in the money system.  The markets were
also thin ahead of last night's announcement by the Federal Reserve Board of the
latest money supply figures.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1881 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Papandreou to tighten controls on investment

BYLINE: BY VICTOR WALKER IN ATHENS

SECTION: SECTION I; Pg. 1

LENGTH: 811 words


GREECE'S FIRST Socialist Prime Minister, Dr Andreas Papandreou, has unveiled
further details of an economic programme which, he says, will help overcome
recession and inflation and stimulate a return to growth.  At the same time, it
is intended to promote "the redistribution of income that in our philosophy is
inter-related with the revitalising of the economy."

There are to be tighter controls - in some instances through new government
agencies - on domestic and foreign investment, bank credit, prices and profits
and tax reliefs for lower-income groups.  There will also be a crackdown on tax
evasion by the business world and the selfemployed, and a substantial proportion
of Greek industry will be submitted to "socialisation," through the creation of
new supervisory councils consisting of representatives of management, staff,
local authorities and the state.

The measures supplement an earlier batch dealing mainly with wage and salary
increases to be granted during 1982.

Discussing investment incentive legislation enacted by the previous government
only a year ago, which introduced the EEC system of matching grants, the Premier
said its main shortcoming was its failure to provide for adequate control and
evaluation of investment proposals.

In future, a proposal would be assessed on the criteria of employment
stimulation, export promotion, import substitution, energy conservation,
technological development and environmental protection, as well as its
profitability and survival prospects.  Investment applications already submitted
under the 1981 legislation would be re-examined.

Mr Papandreou said that foreign investments would be welcome "provided they are
also profitable to the Greek economy." A new department would ensure that they
conformed with the Government's development programme, while "the inadmissible
situation of overpricing that leads to extensive tax evasion and a drain of
foreign exchange will not be allowed to continue."

He said the Government would seek to promote joint ventures, especially with
Arab investors.

The Premier said that bank credit controls would prevent "the transfusion of the
people's savings to speculative investments," which he described as the main
cause of Greece's high inflation rate.Future credit policy, to be set by the
Government, would be implemented by a reorganised Bank of Greece in ways
ensuring that loans granted were in harmony with government policy and financing
regulations.

One of the most immediate problems facing Greek industry is the future of an
estimated 100 major companies and a larger number of small units on the verge of
bankruptcy because of excessive bank loans.

Mr Papandreou said that each company in this category would be examined
separately by committees of bank officials and other specialists, mainly on
socio-economic criteria.  Enterprises found "not viable in this sense" would be
wound up, and the rest would be supported in a manner ensuring "the
establishment of social control." This would "do away once and for all with the
vicious circle of further debts for the enterprise and higher profits for
individuals."

A major instrument of social control would be conversion into shares of part of
all of a company's bank loans, to be followed by decisive participation of
workers and local government in future management.  Rights of banks arising from
the conversion of their loans into shares would be transferred to a new
government agency, and interim funds would be provided for companies set for
takeover by the agency.

Referring to the promised "socialisation" of key sectors of private industry, Mr
Papandreou said that the system of enterprise supervisory councils would be
introduced for all major mining enterprises, large shipyards and the steel,
cement and fertiliser industries.These councils would consist of representatives
of the companies' staff, local government, the state and management

The government would set up a consolidated insurance agency grouping all
insurance firms owned by state-controlled banks, and a national pharmaceuticals
industry to operate alongside private companies.

The Premier said the Government would intervene "wherever necessary" in the
shaping of commodity prices through a price and cost control policy that would
apply to finished goods which were an important item on grocery bills and basic
raw materials and intermediary products.

In the fiscal sector, he said, the Government would reduce the tax burden on the
lower-income groups while combatting a widespread tax evasion estimated to
deprive the national budget of one-third of its normal revenue.

Taxation on the distributed and undistributed profits of local and foreign
companies would be revised and a real estate property tax introduced to supply
the financing needs of local authorities.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1882 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Dassault buys 20% of Europe-1 radio

BYLINE: BY DAVID WHITE IN PARIS

SECTION: SECTION I; Pg. 1

LENGTH: 248 words


M MARCEL DASSAULT, founder of the French Dassault-Breguet aircraft group, has
emerged as the purchaser of a large block of shares in the Europe-1 radio
station.

M Dassault's holding company, Societe Centrale d'Etudes Marcel Dassault, is
believed to have bought 20 per cent of Europe-1 shares on the stock market. This
new diversification move coincides with M Dassault's loss of control over his
main aerospace activities to the state, under the French Government's
nationalisation programme.

The deal involves a transfer of assets between the main shareholders of the two
arms-related companies - Dassault-Breguet and Matra - in which the state is
taking majority control.

The Dassault stake includes 5.8 per cent previously held by the Floirat group,
representing the family interests of M Sylvain Floirat, former chairman of Matra

The purchase - with 14 per cent bought from small shareholders - make Dassault
the second largest shareholder in Europe-1.  The French state holding company,
Sofirad, holds 34 per cent of the capital, and the Principality of Monaco -
where Europe-1 runs the Tele-Monte-Carlo television channel - just under 5 per
cent.

A 16 per cent stake built up by Matra itself is to temain in the private sector.
Along with Matra's other publishing and broadcasting interests, notably
Hachette, which came under effective Matra control at the end of 1980, the stake
has been brought into a new portfolio unit, Matra-Medias Beaujob (MMB).

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1883 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

ITT may hive off telex group

BYLINE: BY IAN HARGREAVES IN NEW YORK

SECTION: SECTION I; Pg. 1

LENGTH: 463 words


INTERNATIONAL Telephone and Telegraph, the large U.S.-based conglomerate, is
considering hiving off its large communications services group, either as a
separate public company or in the form of a joint venture.

Communications services is one of ITT's fastest growing areas, taking in the
company's operation as the leading international telex carrier from the U.S. and
its recently launched domestic U.S. telex and telephone services, but it also
requires heavy capital spending over the next five years.

Mr Rand Araskog, ITT's chairman, said that the group spends between $130m and
$150m of ITT's $1bn a year capital budget at a time of a financial squeeze
caused by ITT's high level of debt.  It had beome necessary to consider ways of
financing the division separately.

ITT has already held talks about a possible joint venture with "other major
American corporations who are not in that field," according to Mr Araskog.  He
stressed that, at this pint, ITT had not made a basic strategic decision about
the wisdom of a hive-off.

That decision will, in practice, depend upon whether ITT solves its problems of
excessive gearing by selling a major asset, such as the Rayonier forest products
company it is currently trying to sell for $3.3bn.

It will also depend, Mr Araskog, said, upon the shape of telecommunications
deregulation now being debated on Capitol Hill and upon an assessment by ITT of
how quickly to try to expand the communications service sector.

The Company recently set up a special communications service group under Mr
Robert Braverman, a vice-president, with the responsibility of drawing together
ITT's activities as a telecommunications carrier with its publishing and
educational interests.

Mr Braverman says he sees ITT putting together a packageable business as a
seller and transmitter of proprietary data-bases and even, in the long term,
becoming a contractor to market a complete communications service for other
companies.

The formation of the new communications group was one of several points to
emerge in a series of interviews with ITT's senior executives.

It also emerged that, in reporting its 1981 financial results later this month,
it will definitely adopt the recently announced change in accounting procedures
for foreign exchange.  They have the effect of greatly reducing the impact of
foreign-exchange fluctuations upon the earnings statements of American
corporations.

According to Wall Street estimates, which the company has not challenged, the
change will very nearly double ITT's 1981 net income

On the question of asset sales, Mr Araskog confirmed that Raynonier is proving
difficult to sell at a time of high interest rates and severe depression in the
forest products industry.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1884 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Irish foreign borrowing doubles

BYLINE: By Peter Montagnon in London

SECTION: SECTION I; European News; Pg. 2

LENGTH: 284 words


IRELAND's foreign borrowing jumped last year to a net I£1.28bn ($2.03bn) from
only I£566m in 1980, according to estimates by bankers in Dublin.

The increase, which left the country's outstanding foreign debt at some I£3.5bn,
was necessitated by a sharp deterioration in the country's current-account
balance of payments, in which the deficit doubled to around I£1.4bn from I£720m
in 1980.

Euromarket bankers said they had been aware that Ireland had stepped up its
borrowing activity over the past year but precise figures have been hard to pin
down until now because of the extreme discretion with which the borrowing is
carried out.

Relatively few Irish borrowings are actually carried out in public markets and
the Finance Ministry has traditionally preferred to arrange bilateral deals with
individual banks.  This policy has allowed Ireland to raise money on some of the
best conditions available in the Eurocredit market.

About 55 per cent of last year's new borrowing was arranged in D-Marks, with the
next most heavily used currency being the U.S. dollar at a share of about 25 per
cent.  The currency of some previous borrowings was changed during the year
under multi-currency clauses in loan agreements so that the share of the D-Mark
in all outstanding borrowings was slightly reduced.

Last year's borrowing total does not include two recent operations for £120m and
$300m, which will be drawn later this year.  No forecast is yet available for
this year's likely borrowings needs.

Although last year's borrowing did not fully cover the balance of payments
deficit, the country's external reserves rose slightly to I£1.47bn from I£1.35bn
at the end of 1980.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1885 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Military gives show of strength on Warsaw streets

BYLINE: BY OUR FOREIGN STAFF

SECTION: SECTION I; European News; Pg. 2

LENGTH: 743 words

HIGHLIGHT: GOVERNMENT SAYS INDUSTRY BACK TO NORMAL IN POLISH CAPITAL


THE FIRST working day of the New Year passed in Poland yesterday with official
claims that all the factories and enterprises in Warsaw were back to normal.

Unlfficial reports from the massive Lenin shipyards in Gdansk, however, said
that only half the workforce had been reinstated.  There was no information on
the turn out in other strongholds of the Solidarity union, like Katowice and
Krakow.

The return to work was marked by a show of military strength in the capital.  A
column of armoured personnel carriers rumbled down the main Marshalkowski Street
in a display of force not seen for many days.

In general, armour has been kept off the streets, but road blocks and patrols
were stepped up noticeably on Sunday.  Car searches were increased.  The militia
manning roadblocks were reinforced.  Trucks toured the streets with riot shields
stacked in the windows.

Whether or not workers are going to their workplaces, it remains impossible to
assess how much is being produced.  But increasingly reliable pointers suggest
that industry is being strangled by shortages of raw materials, components,
communications and by a failure to make decisions at any level, because martial
law has created an administrative vacuum.

As the military attempts to restore a measure of normality to life in Poland,
there are also signs that the Communist Party is beginning to take stock of its
position.

Party officials say there may be a meeting of the policymaking central committee
later this week -- the first since the declaration of martial law four weeks
ago.

There continues to be signs, however, that the party is wracked by infighting
between hardliners, moderates and radicals, with those who are reformminded
apparently holding their position.

The fate of a number of regional party leaders is likely to be clarified by the
Central Committee.  Some, like Mr Tadeusz Fiszbach, the Gdansk party secretary,
have been accused of being too liberal.  Others, such as Mr Andrzej Zabinski,
are charged with being too hardline

There are continuing indications that a purge in the media is under way.  A
reliable report says that new "journalists," hitherto unheard of, have appeared
in the offices of the party newspaper Trybuna Ludu.  Many radical journalists
say it will be impossible for them to continue work.

The purge and "verification" of workers at all levels is continuing.

"Verification" procedures apparently require workers in certain industries to
sign pledges of loyalty and to renounce the Solidarity trade union.

Meanwhile, attempts to fill the political vacuum appear to have run into
difficulty.

A bid to establish an officially approved Christian Democrat Party has failed to
win the support of the country's religious leadership.  Without Church backing,
the party is unlikely to win substantial popular support.  Reports say that the
proposed party was to be led by Mr Zenon Komender, the Minister of Internal
Trade.  His proposed deputy was Mr Richard Reiff, the head of the Roman Catholic
group Pax, which has a history of cooperation with past Governments in Poland.

Mr Reiff himself incurred official displeasure when on the night of December 13
he refused to sign a Council of State decree ordering the imposition of a state
of emergency.He was the only member of the council, which serves as a collective
presidency, to do so.

Meanwhile the trials of strikers continued in public at the Warsaw district
courts.  New trials, of strike leaders from the Huta Warsawa steelworks and from
the Ursus tractor factory, are due to start today.

Archbishop Glemp, the Polish Primate, is reported to have visited women
internees at Olszynka Grochowska.  Meanwhile, some 300 detainees in Warsaw's
Bialoleka jail have issued a protest against a marked worsening of conditions
since Christmas.  They are also said to be considering a hunger strike.

* Radio Warsaw said yesterday that Soviet supplies of meat would allow Poland to
meet its ration-card commitments in January.

The AgricultureMinister, Mr Jarzy Wojtecki, said in a broadcast that an appeal
had been madeto Polish farmers to sell the state more grain.  Farmers, he said,
had failed to deliver 850,000 tons of grain they had contracted to produce.

The Government had been able to buy only 1.4m of 3.6m tons of wheat it planned
to purchase, the Minister said.  Imports of grain were down because some
supplier countries had reduced.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1886 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Italian jail break investigation stepped up

BYLINE: By Rupert Cornwell in Rome

SECTION: SECTION I; European News; Pg. 2

LENGTH: 333 words


A 50-STRONG detachment of special police has been despatched from Rome to help
with investigations after the escape of four leading women terrorists from the
jail at Rovigo during which a passer-by was killed and six other people injured.

The military efficiency with which Sunday's operation, involving at least 10
outside accomplices, was carried out has reinforced the fears of security
authorities over a new wave of extremist violence.

Of the four terrorists who escaped through the hole blasted by 50 kg of dynamite
in the Rovigo prison wall, the best known is Susanna Ronconi.  She is understood
to have belonged to both the Red Brigades and the Prima Linea (Front Line)
terrorist organisations, and has been linked with the 1978 kidnap and murder of
Sig Aldo Moro, the former Italian Prime Minister.

The Rovigo episode underlines the concentration of leftwing activities in the
Veneto region of north-east Italy.  The jail at Rovigo is only 40 miles from
Verona, where on December 17 Red Brigades terrorists seized General James
Dozier, the U.S. deputy chief of staff at Nato's Southern European Land Forces
headquarters based in that city.

In neither case do the police appear to have made much headway -- despite
confirmation of a L2bn (£870,000) reward for anyone providing information
leading to the release of Gen Dozier.  It is not clear, however, whether the
money is being put up by the U.S. or Italian Governments.

The Dozier case and the prison break have also coincided with alarming pointers
to the potential reservoir of sympathy -- and thus of at least tacit
acquiescence -- upon which Italy's left-wing terrorists can rely.

According to an opinion poll carried out by the L'Espresso weekly magazine, one
fifth of those interviewed in the age group 20 to 24 declared their belief that
the Red Brigades were "fighting for a better society." Over a third maintained
that the left-wing group was "pursuing the right ends, but with the wrong
means."

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1887 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

British Rail to drop Dieppe ferry after split with SNCF

BYLINE: BY ANDREW FISHER, SHIPPING CORRESPONDENT, IN LONDON

SECTION: SECTION I; European News; Pg. 2

LENGTH: 358 words


SEALINK UK, part of British Rail, will pull out of the Newhaven-Dieppe ferry
service at the end of this month after losing more than £1m ($1.9m) on the route
last year.

But its partner, French Railways (SNCF), will continue to operate on the link
between the southern English port and northern France.

Sealink UK said yesterday that it had failed to agree on new operating and
financial arrangements with SNCF which would have allowed it to continue without
heavy losses.

It will withdraw its ferry, the Senlac, from the service on February 1, making
more than 200 seamen redundant.

Speaking on his first day as managing director of the UK company, Mr Len
Merryweather said he was concerned about the effect of the decision on staff at
Newhaven.

"But the painful truth is that the company could not continue a service which
loses over £1m a year with no prospect of recovery," he added.  The British
National Union of Seamen (NUS) said it felt the route could be profitable in the
long term.

Sealink UK's decision to withdraw from the route is the latest of a series of
steps by British ferry companies to put their operations onto a profitable basis
after heavy losses.

P & O Ferries recently closed the loss-making service between Liverpool and
Belfast, while Townsend Thoresen - part of European Ferries - is reducing its
operation to Northern Ireland.

All three UK companies have announced average 15 per cent fare increases for
1982 after the price war of the past two years.  P & O said its ferry activities
returned to profit in the second half.

The NUS described the Newhaven-Dieppe decision by Sealink UK as "short-sighted."
The possibility of crewmen taking industrial action to keep the service open
could not be ruled out.

Unlike the shorter cross-channel routes from Dover, the crossing from Newhaven
to Dieppe takes about four hours.  SNCF has two ships on the route, both smaller
and older than the Senlac.

Sealink UK's ship, which goes for its annual survey and refit on January 16 -
two weeks before its formal departure from the service - will be up for sale at
an estimated £3.5-£4.5m.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1888 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

'5m jobless if UK quits Community'

BYLINE: BY DAVID MARSH IN LONDON

SECTION: SECTION I; European News; Pg. 2

LENGTH: 350 words


THE NUMBER of people out of work in Britain would rise to 5m if a future Labour
government took the country out of the EEC, Mr Ivor Richard, European
Commissioner responsible for employment, said in London yesterday.

Mr Richard was speaking at a news conference to launch a study showing that
British membership of the Community was boosting investment in the UK by U.S.
and Japanese companies.

The study, commissioned by the European League for Economic Co-operation, showed
that 59 per cent of U.S. investment in Europe in 1980 came to the UK.  The
proportion had grown since Britain joined the Community.

About half of all direct Japanese investment in Europe was also Britain.

Mr Christopher Tugendhat, vicepresident of the European Commission, who also
attended the news conference, said that most companies surveyed in the study
considered the 300m-strong European market as a single entity.

If Britain withdrew from the Community, tariff barriers would go up, Britain
would no longer attract anything like the same volume of investment

Mr Richard said that Britain's ability to attract investment was helping the
fight against unemployment.

According to figures contained in the study, net inward direct investment in the
UK in 1979 rose sharply to £1.8bn from £1.3bn in 1978.  About £270m of the 1979
investment came from EEC companies with £990m from the U.S. and £45m from Japan.

Industrialists quoted in the survey from U.S. and Japanese companies in Britain
were unanimous in wanting Britain to stay in the EEC.  Mr Peter Polgar, general
manager for Europe of General Instrument of New York, said a decision to leave
the Community would interrupt the orderly flow of material from its factory in
Scotland to the rest of the Common Market.

Mr Michael Reakes of Honeywell said that if Britain left the EEC, the UK market
alone would not justify the company's current manufacturing facilities in
Britain.  Mr William Fulton, managing director of Sony UK, said his company
would be in difficulty if it were cut off from the major markets of Europe.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1889 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Greece switches forces' chiefs

BYLINE: BY VICTOR WALKER IN ATHENS

SECTION: SECTION I; European News; Pg. 2

LENGTH: 261 words


GREECE'S Socialist Government yesterday embarked on a sweeping reshuffle of the
armed forces' leadership by replacing all four chiefs of staff.

A meeting of the Supreme Council of National Defence, chaired by Andreas
Papandreou, the Premier and Defence Minister, retired the Chief of the General
Staff, Gen Agamemnon Gratsios, and the chiefs of the army, navy and air force.

Admiral Theodoros Deyiannis, until now chief of the fleet, was appointed to
succeed Gen Gratsios as chief of the armed forces.

Rear Admiral Odysseus Kapetos, head of naval training, becomes chief of the navy
in place of Rear Admiral Spyros Konofaos.

Air Vice-Marshal Nicholas Kouris takes over as chief of the air force staff from
Air Vice-Marshal Demetrios Papageorgiou, and Lt-Gen Dimitrios Panagopoulos,
commander of the Third Army Corps, is appointed chief of the army general staff
in place of Lt-Gen Efthimios Karayannis.

The reshuffle takes place against a backdrop of increasing tension with Turkey,
both over Aegean disputes and in Cyprus, where Turkish troops have occupied the
northern 40 per cent of the island since the 1974 invasion.

Gen Gratsios, 60, had served as chief of the Greek armed forces since 1980, and
for four years previously was chief of the army.  His replacement by Admiral
Deyiannis comes under the rotation rule for armed forces chiefs.

The Supreme Council of National Defence will meet again today to continue the
reshuffle in the second-rank leadership of the armed services.  All those
replaced yesterday have been retired.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1890 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Swiss foreign reserves lowest since 1977

BYLINE: By John Wicks in Zurich

SECTION: SECTION I; European News; Pg. 2

LENGTH: 191 words


SWITZERLAND'S official foreign-exchange reserves dropped to SwFr 25.49bn
($14.2bn) on December 31, the lowest end-of-year level in terms of Swiss francs
since 1977 and down by SwFr 1.86bn on the end of 1980.

The Swiss National Bank's gold holdings were valued at SwFr 11.9bn, and have
thus remained virtually unchaged for 10 years.

According to the National Bank statement for the last 13 days of 1981, central
bank earnings "developed favourably." With the exception of 1978 and 1979, the
National Bank has recorded net profits of slightly over SwFr 7.5m for the past
10 years.

The major contribution to the 1981 profits of the bank is said to have been the
high level of foreign money-market rates.  Unlike in previous years, these
earnings were not reduced by currency losses.  Foreign currencies were revalued
in the National Bank's accounts on the basis of the average December exchange
rate, the dollar increasing to SwFr 1.815.

Last year's National Bank profits are to be used in part to build up provisions,
particularly those against currency risks, the bank announces in a commentary to
the end-of-year figures.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1891 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Rock set deadline to find another role

BYLINE: Robert Gnaham

SECTION: SECTION I; European News; Pg. 2

LENGTH: 1153 words



HIGHLIGHT: The Gibraltarians have been given little more than 18 months to find
alternative sources of employment.  This will not be easy in an artifical
economy more than two-thirds dependent upon the £60m the British Defence
Ministry spends there each year.  The most common feeling is that it would be
better if the frontier with Spain remained closed.
Gibraltar feels deeply betrayed and exasperated by Britain's decision to close
its naval dockyard there, writes Robert Graham


BULLDOZERS are busy at work on the Spanish side of the frontier with Gibraltar.
They are levelling the ground between the Rock and La Linea which has become a
bleak noman's land in the 12 years that the frontier has remained closed.  It
will become a car park for Spanish visitors to Gibraltar -- and the first
tangible sign that the Spanish Government intends to reopen the border.

The prospect of an open frontier is being greeted with misgiving and uncertainty
in Gibraltar and whatever emerges from the Spanish Prime Minister Sr Leopoldo
Calvo Sotelo's visit to London on January 8 in unlikely to change the mood.

Any move to resolve the long-standing dispute between Britain and Spain over the
status of Gibraltar is bound to affect the protective British cocoon.  Already
the Gibraltarians have been given a nasty taste of the shape of things to come.
In November the British Ministry of Defence announced the closure by 1983 of the
naval dockyards.  This means that 1,432 will lose their jobs, and a further 500
ancillary posts may also go.  Put another way, one in every six members of the
Rock's workforce is liable to lose his job.

The Gibraltarians have been given little more than 18 months to find alternative
sources of employment.This will not be easy in an artificial economy more than
two-thirds dependent upon the £60m the British Defence Ministry spends there
each year.

The most common feeling voiced now in Gibraltar is that it would be better if
the frontier remained closed and the dockyard stayed open.

Even though the Chief Minister, Sir Joshua Hassan failed in his recent bid to
change the decision, there is a general reluctance among the population to
accept it as final.

People remember 1977, when the then Foreign Secretary, Dr David Owen, overruled
a move to shut down the naval facility precisely because of the effects on
Gibraltar's economy.

Mr Wilfred Garcia, head of the Chamber of Commerce, says bitterly: "Almost to
the point of being pathetic, we believed in Britain's word that it would support
and sustain Gibraltar.  But the dockyard decision taints our attitude towards
any future British commitment."

The sense of betrayal is as deep as the sense of exasperation.  The timing of
the closure announcement could scarcely have been more unfortunate, coinciding
as it did with leaks of progress on the frontier opening.

The writing has been on the wall for the dockyard for some time.  The facilities
represent 4 per cent of the Royal Navy's total dockyard capacity, and are
roughly one-fifth the size of Chatham, also to be axed.  In recent times
Gibraltar has been used for refitting leander class frigates.  But these vessels
are being phased out and a different, more cost-effective refitting system is
being evolved that eliminates the need for the Rock's yards.

A consultant's report on alternatives to the yards was completed in mid-October.
Although its contents officially remain secret, Gibraltarian anger over the
whole affair has ensured that its contents are known.  The basic conclusion is
that there is no viable manufacturing alternative on the Rock and that the only
hopes lies in commercial exploitation of the facilities.  Ironically P & O
expressed an interest in the yards some time ago but the Gibraltarians could do
nothing because then the MoD wanted to stay.

Independent assessments suggest that the facilities can be commercially viable,
despite the competition from Lisbon and Cadiz.  But there are important
provisos.  It is reckoned that some £25m would have to be invested.  A
commercial operator would have to be found, and there would still be some
unemployment.

Mr Joe Bossano, leader of the Gibraltar Socialist Labour Party and branch
officer of the Transport and General Workers' Union is determined to fight the
closure.

"There is no way that Britain can keep Gibraltar as a military base and put
2,000 people out of work," he says defiantly.  "The labour force just will not
co-operate." He argues that Gibraltar is unique.  "You close down Chatham
Dockyards and at least there is some opportunity to absorb this in the context
of a big economy.  But here there is nothing." He also points out that the
closure means a total annual cost to the Rock of £8m-£2m less in wages and the
rest in unemployment payments.

He is not alone in maintaining that Gibraltar's finances, unless boosted by
external support, would be quickly exhausted supporting such unemployment.  At
present fewer than 500 of the 12,000 workforce are out of work.

The only scope for negotiation appears to be the phasing of the closure and the
extent of British assistance to find an alternative source of jobs.  The
situation is complicated by the fact that the dockyard facilities are
incorporated into the naval base.  There is no suggestion that the navy should
pull out of the base -- which is used for visiting vessels, including nuclear
submarines.  The Gibraltarians fear that in the event of a decision being
reached on a commercial dockyard, the MoD will impose restrictions on the type
of work it can handle for security reasons.  The Foreign Office tends to
discount this but the MoD has not yet made any statement.

To compound the uncertainty about the Rock's future, the MoD has also recently
announced a reduction in the use of the airfield.  To save up to £1.5m the MoD
said that flying hours would be cut with no weekend operations.  Flights are
already down to only six a week; regular and charter included.

Mr Garcia comments: "These restrictions make no sense.We have always argued that
Gibraltar was too dependent on defence expenditure.

"We can only expand the services sector -- tourism conferences and banking.  But
to do this we must have proper air communications.

"Now we are being told to stand on our feet, yet they are removing the means.How
can you attract tourism with no week-end or night flights?"

The proposed restrictions bear the stamp of an insensitive Whitehall
bureaucracy, and the Foreign Office is doing its best to sort out some
compromise.

As for the border opening there is still a good deal of cynicism.  The Lisbon
agreement signed in April 1980 envisaged that the border would be open by June
of that year.  Then the Spaniards promised withdrawal of the unilaterally
imposed sanctions against Britain's commitment to negotiate all aspects fo the
Rock's future.

Ingrained differences blocked the implementation of the agreement and now there
is much caution over reports of a breakthrough.

Spanish membership of Nato does, however, offer the one hope of an acceptable
settlement.

The Rock could become a Nato base.  Some concessions could be made to Spanish
sovereignty while Britain remained a guarantor of the Gibraltarians' rights.

Sr Calvo Sotelo would not be visiting London if he thought there was no chance
of genuine progress.

LANGUAGE: ENGLISH

GRAPHIC: Picture, Gibraltar . . . hopes pinned on dockyard's commercial use.

                   Copyright 1982 The Financial Times Limited


                             1892 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Asian economies to see 'fastest growth' in 1982

BYLINE: BY KATHRYN DAVIES IN SINGAPORE

SECTION: SECTION I; Overseas News; Pg. 3

LENGTH: 488 words


ASIA will be one of the fastest growing areas in the world in 1982, with
developing Asian economies outstripping the performance of all other regions.

A report issued by Chemical Bank on the expected progress of 13 developing
countries and the three regional members of the OECD - Japan, Australia and New
Zealand - notes that Asia as a whole will contribute an additional $90bn to
world gross national product this year.  This would be three times the projected
increase in the combined GNP of both North America and Europe.

Even developing Asian countries by themselves - which are expected to put an
extra $45bn on their combined GNP - will surpass the performance of the U.S.,
Canada and Europe.

However, Asian economies have also been affected by the recession in Western
industrialised countries and in particular, by falling commodity prices.
Chemical Bank predicts a modest recovery in the U.S. economy in the second
quarter of 1982, leading to an increase in demand for Asian exports.  The report
also assumes a rise in commodity prices over their depressed 1981 levels.

The 16 countries covered by the bank report include China, Taiwan, Pakistan and
the five members of Asean - Thailand, the Philippines, Singapore, Malaysia and
Indonesia.

Noting that China's real growth rate fell substantially lat year as a result of
Peking's efforts to "readjust" its economic priorities, Mr Eric Rasmussen,
Chemical Bank's Singapore-based regional economist, expects a moderate
improvement this year, with the agricultural sector growing by between 2.5 and 3
per cent and industrial output by around 6 per cent, compared with 3 to 4 per
cent in 1981.

Once again, Singapore and Hong Kong are likely to record the highest rates of
growth in the region, at 10 per cent, with Indonesia and Malaysia - both hit by
low commodity prices in 1981 - expanding by 7.5 per cent.

More modest but still healthy progress will be made by India, Pakistan, and Sri
Lanka - all of which, the report notes, are in the throes of economic reform
under the guidance of the International Monetary Fund.

The Philippines was hit last year by the effects of oil price increases, the
inflexibility of its manufacturing sector and falling commodity prices but, says
Mr Rasmussen, "they've done pretty well to keep growth from falling much below 5
per cent."

The survey reserves its harshest words for New Zealand, calling for a reform of
the country's existing tax and social-security systems to encourage private risk
investment.

Rates of inflation in the Asian region are likely to drop in 1982, averaging 6.4
per cent compared with 7.4 per cent in 1981 and 10 per cent in 1980.  Inflation
in China and Japan - at 3 per cent and 4.5 per cent respectively - will be the
lowest in the region.  Chemical Bank expects Japan to operate with a $13bn
current-account surplus this year, significantly up from $6.7bn in 1981.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1893 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Nimeiri arrests southern dissidents

BYLINE: BY RICK WELLS IN KHARTOUM

SECTION: SECTION I; Overseas News; Pg. 3

LENGTH: 289 words


TWENTY-ONE prominent southern Sudanese politicians have been arrested in Juba
and brought to Khartoum charged with forming an illegal political party and
attempting to procure funds from Libya.

They include 17 former Ministers as well as two ex-Speakers of the People's
Assembly of the South.

A crisis in relations between Khartoum and the region, whose population is
predominantly non-Moslem, has been triggered off by President Jafaar Nimeiri's
plans for redividing it.

The detentions followed the despatch of a declaration to Mr Nimeiri by the
recently formed Council for the Unity of South Sudan whose creation is said to
be in contravention of the ban on the formation of political parties other than
the Sudanese Socialist Union.

Many southerners were taken aback by the Government's decision to dissolve both
the national and southern regional assemblies.  The six-month transitional
Government headed by Major-General Rassas was established to preside over new
elections and also the redivision of the southern region.

The sending of the declaration was prompted by an announcement that the
referendum concerning local government in the South would be held only in the
provinces of Eastern and Western Equatoria.  It is believed that if a vote were
taken throughout the region a majority would reject the proposal for redivision.

President Nimeiri is committed to a policy of decentralisation in the North -- a
policy that he evidently feels should also be extended to the South.  The
declaration and the arrests indicate the extent of the opposition.

One of the Sudanese leader's most outstanding achievements was the ending of the
civil war between the central Government and the South in 1972.

LANGUAGE: ENGLISH

GRAPHIC: Picture, President Nimeiri: plans to redivide the South.

                   Copyright 1982 The Financial Times Limited


                             1894 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Ghanaian President arrested at checkpoint

BYLINE: By Mark Webster

SECTION: SECTION I; Overseas News; Pg. 3

LENGTH: 265 words


THE Deposed Ghanaian President, Dr Hilla Limann, was arrested yesterday as the
country's new military rulers announced that they had frozen the bank accounts
of many senior officials in the former Government.

Accra radio, monitored in Abidjan, said the assets and accounts of 129 people
had been frozen including those of the President and Vice-President, Joseph de
Graft Johnson.

The leader of the coup, Flt-Lt Jerry Rawlings, has promised a "holy war" against
corruption -- a phrase reminiscent of his last coup in June, 1979, when eight
senior military personnel were executed for abusing public funds.

Fearing a repeat of 1979, many officials have fled the country.  But Dr Limann
was detained at a police barrier on the outskirts of Koforidua, near the
capital.

A military spokesman said the former President was safe, although he refused to
say where he was being held.  The ruling Provisional National Defence Council
has warned former officials that their safety cannot be guaranteed if they do
not report to the police.

The war against corruption has been the key element in the coup, and Accra radio
yesterday announced that all banks should stay closed until noon to enable the
Defence Council "to carry out an important national exercise."

The freezing of bank accounts applies to all MPs, former Ministers and officials
of Dr Limann's Peoples' National Party as well as their wives, children and any
companies or organisations in their charge.

There seems little doubt that Flt-Lt Rawlings intends to be far more thorough
than during his last coup.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1895 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Bahrain seeks 12 more for coup attempt

BYLINE: By Mary Frings in Bahrain

SECTION: SECTION I; Overseas News; Pg. 3

LENGTH: 133 words


NAMES and photographs of 12 more Bahrainis suspected of being involved in
December's abortive coup attempt were published yesterday.

Sheikh Mohammed bin Khalifa al-Khalifa, the Interior Minister, said the wanted
men were all young Shia Moslems known to be in Iran. If they did not return to
Bahrain within three months, they would forfeit their citizenship and would be
tried in absentia, he said.

The Minister accused an Iranian clergyman, Hojatoleslam Hadi Al Mudarasi of
masterminding the coup attempt from the headquarters in Tehran of the Islamic
Front for the Liberation of Bahrain.

Sheikh Mohammed said police investigations were almost complete, although some
dissidents might still be in hiding.  Some were known to have escaped and some
did not actually enter Bahrain.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1896 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Prince's Israel pledge denied by Riyadh

BYLINE: BY OUR FOREIGN STAFF

SECTION: SECTION I; Overseas News; Pg. 3

LENGTH: 276 words


SAUDI ARABIA has denied that it is willing to recognise Israel even if certain
prior conditions are met.  The Foreign Ministry issued a statement yesterday
contradicting the report of an interview with Prince Saud al-Feisal in the New
York Times during which the Foreign Minister appeared to offer recognition of
Israel in return for withdrawal from occupied Arab territories.

"There is absolutely no truth in what has been attributed to his Highness about
the kingdom's recognition of Israel.  The important point in Prince Saud's
statement concerned Israel's recognition of Palestinian rights and withdrawal
from occupied Arab lands.  Response to these two legitimate conditions could
bring peace to the area," the Foreign Ministry said.

The dispute over the Prince Saud interview highlights the confusion in the Arab
world over a joint response to Israel's annexation of the Golan Heights and the
future of the Saudi eight-point plan for a comprehensive peace in the Middle
East.

Mr Chedli Klibi, secretary general of the Arab League, arrived in Saudi Arabia
yesterday at the start of a tour aimed at fixing a date for reconvening the Arab
summit meeting which had to be abandoned last November.  The collapse of the
summit was due to sharp divisions over the Saudi peace plan.

President Hafez al-Assad of Syria would like a swift agreement on a new summit
date to establish a common Arab response to the annexation of the Golan Heights.
The Saudis are still insisting, however, that their peace plan remains on the
summit agenda but now realise that it stands little chance of being accepted if
it implies recognition of Israel.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1897 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Algeria's camel drivers forced to smuggle

BYLINE: By MARK WEBSTER, RECENTLY IN TAMANRASSET, ALGERIA

SECTION: SECTION I; Overseas News; Pg. 3

LENGTH: 513 words

HIGHLIGHT: PROBLEMS OF THE SAHARAN TRADER


THE LINE of camels made its stately progress through the gathering sandstorm, an
increasingly rare reminder of the once-thriving trans-Sahaha trade.

The drivers posed obligingly for a battery of press photographers on a trip from
Tunisia to the Ivory Coast and then set their beasts' faces into the sand and
moved off silently in the direction of the desert trading town of Tamanrasset.

The Nomadic desert traders have found it impossible to compete with the heavy
lorries which rumble down the highway from the Algerian capital of Algiers.
Even though the badly eroded tarmac means that the round trip from Algiers to
Tamanrasset takes five days, the lorries are more than a match for the camels
which plod 30 to 40 miles in an average day.

Because everything from flour to fancy goods is brought from Algiers, there has
been steadily declining traffic from the neighbouring countries of Niger and
Mali.  This declining trade, coupled with pressure from the Algerian Government
to settle permanently, has made the camel caravans largely a thing of the past.

In order to survive, the camel traders have turned to illicit trade in anything
which is hard to find in Algeria.  They bring whisky, which fetches Algerian
dinars 150 (£19) a bottle, for most of the year and twice that price near the
big Moslem feasts.

Tamanrasset functions admirably on the whisky standard, and merchants will
willingly quote prices for anything from petrol to clothing in bottles of whisky
-- and there is no problem controlling the supply of that brand of currency.

The traders also still dabble in human trade.  Although an official of the town
hall in Tamanrasset said the slave trade had all but died out, there is still a
lively commerce in Algerians wanting to get into France for work, and
Tamanrasset is considered a good jumping off point.

Tamanrasset is also an important port of call for the dozens of hopeful young
Europeans taking cars and lorries down to the west coast of Africa to sell them
at what they hope will be a much inflated price.  The noman's land between the
Tunisian and Algerian border is littered with the stripped carcasses of cars,
stranded because their papers were not complete, while all along the route to
black Africa, there is evidence of cars which were not up to such a long and
arduous journey.

For those who do make it, the rewards can be good.

The 20-year-old German at the border between Algeria and Mali said he had bought
himself a villa and a sailboat on the strength of his regular forays into black
Africa with cars and trucks, and the border area is dotted with cars still
bearing French licence plates.

But the experts say that life is getting much tougher for the car smugglers.
Only Togo has not yet introduced laws to control the sale of cars imported by
individuals, and dealers prefer to wait until the price sinks as low as the
sellers' morals and bank balance before snapping up a bargain.

"You can usually tell by how glum they look how much they will sell cars for,"
said one former car trader.

LANGUAGE: ENGLISH

GRAPHIC: Map, no caption

                   Copyright 1982 The Financial Times Limited


                             1898 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

U.S. likely to appoint new special envoy to Mideast

BYLINE: BY REGINALD DALE, U.S. EDITOR IN WASHINGTON

SECTION: SECTION I; American News; Pg. 4

LENGTH: 366 words


THE U.S. is this week conducting a comprehensive review of its Middle East
policy which could lead to the appointment of a new special American envoy to
the area, according to reports in Washington yesterday.

Hitherto, the Reagan Administration has consistently declined to appoint a new
special negotiator, to do the sort of job carried out by Mr Sol Linowitz under
President Carter, despite urging from both Egypt and Israel that it do so.

Mr Alexander Haig, the Secretary of State, is said by his advisers still not to
be totally convinced that a special negotiator should be appointed -- on the
grounds that the move might encourage exaggerated expectations for the
Israeli-Egyptian negotiations on Palestinian autonomy that are taking place
within the framework of the Camp David accords.

He plans, however, to raise the issue in talks with Mr Alfred Atherton, the U.S.
Ambassador to Egypt, and Mr Samuel Lewis, the U.S. Ambassador to Israel, in
talks in Washington this week.

The two men have been called home for what is described as a wide-ranging review
of Middle East diplomatic issues, with the particular hope of giving new impetus
to the autonomy talks.

In the absence of a special negotiator, the U.S. has been represented at the
talks by the two ambassadors.  Other tasks, particularly involving the Lebanon,
have been carried out on an ad hoc basis by Mr Philip Habib.

The U.S. would like considerable progress in the autonomy talks, if not full
agreement, by the April 25 deadline for Israel's return to Egypt of the last
part of occupied Sinai territory.

The leading candidate for the special negotiator's job is Mr Brent Scowcroft, a
former Air Force general, who served as President Gerald Ford's national
security adviser, the New York Times said yesterday.

Mr Scowcroft had earlier been tipped as a possible successor to Mr Richard
Allen, President Reagan's National Security Adviser, who is on leave of absence
while his future is determined by the White House.

It is now widely expected, however, that Mr Allen's job will go to Mr William
Clark, the Deputy Secretary of State, and that the post will be upgraded at the
same time.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1899 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Venezuela cuts oil export prices

BYLINE: By Ray Dafter and Kim Fuad

SECTION: SECTION I; American News; Pg. 4

LENGTH: 299 words


VENEZUELA HAS cut export prices of its heavy crude oil by an average of 58 cents
a barrel in a bid to maintain production in a slack oil market.

The price cuts, in line with the current trend within the Organisation of
Petroleum Exporting Countries, affect almost half of Venezuela's 1.8m barrels a
day of exports.

According to the current issue of Petroleum Intelligence Weekly, Venezuela -- at
present Opec's second largest exporter -- is aiming to maintain production at
2.2m b/d this year compared with 2.1m b/d in 1981.

The price cuts, which took effect on January 1, range from 29 to 90 cents a
barrel for crudes with specific gravities of between 10 and 20 degrees API
(American Petroleum Institute).

It is estimated that the cuts, affecting around 925,000 b/d of production, will
reduce Venezuela's expected 1982 oil revenues of $19.6bn by about $200m.

New prices for Venezuelan crudes, with the former prices in brackets, are:
Boscan 10 degrees -- $21.40 ($21.69); Laguna 11 degrees -- $23.70 ($24.09);
Morichal and Jobo 12 degrees -- $24.47 ($25.17); Bachaquero 13 degrees -- $25.14
($25.84).

Meanwhile, Venezuela is pushing ahead with a major investment programme to
expand and modernise its oil industry.

Dr Humberto Calderon Berti, Minister of Energy and Mines, has announced that
some $7bn will be spent this year.  The money will be divided almost equally
between capital and current costs.

A total of 1,100 development wells will be drilled.  Some 130 rigs will be used.
In addition, 2,025 existing wells will be repaired and modified for increased
production.

Dr Calderon Berti has stressed that much greater effort is required to maintain
Venezuela's production than in many other countries in view of the maturity of
oil-fired facilities.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1900 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Peru to apply again for $1.1bn IMF credit

BYLINE: BY DOREEN GILLESPIE IN LIMA

SECTION: SECTION I; American News; Pg. 4

LENGTH: 271 words


PERU'S central reserve bank is preparing a third attempt to reach agreement with
the International Monetary Fund (IMF) on a new $1.1bn (£578m) extended fund
facility and compensatory financing arrangement.

The application is for a two-year credit to be drawn down quarterly at the rate
of $137.5m a quarter subject to targets for the Peruvian economy yet to be
agreed.

Earlier approaches to the fund in 1981 were dropped because the Government
apparently was not prepared to take unpopular measures such as sharply
increasing petrol and basic food prices.

An IMF mission headed by Mrs Linda Koenig is due in Lima in the second half of
this month.  However, the Government has already set itself targets for reducing
the current account deficit estimated at $1.5bn last year and slightly higher
this year.

The 1982 budget reduces Government spending but increases taxes, and raises the
price of gasoline from the present 95 cents a gallon to $1.25 by mid-year.

Rice subsidies are also to be eliminated gradually.  Additionally, the central
reserve bank expects to continue to devalue the Peruvian sol by 3 1/2 per cent a
month.

Total devaluation last year was slightly under 50 per cent, while the inflation
rate rose to 73 per cent compared with 61 per cent the previous year.  At the
same time, the Gross National Product grew by 4.4 per cent.

This year's budget of Soles 3,000bn (about £3bn) is 7.6 per cent lower than last
year's in real terms, assuming as the budget does, a 45 per cent inflation rate.

Congress has approved a foreign debt ceiling of $2.9bn compared with $2.1bn in
1981.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1901 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Canadian paperworkers seek catch-up wage rise

BYLINE: BY ROBERT GIBBENS IN MONTREAL

SECTION: SECTION I; American News; Pg. 4

LENGTH: 155 words


THE 65-000-member Canadian Paperworkers' Union will seek increases at least
equal to the present inflation rate in its negotiations with the Eastern Canada
pulp and paper industry this spring, Mr James Buchanan, the union's President
has said.  Nearly all contracts run out at the end of April.

Mr Buchanan said the union believed it had several percentage points of catch-up
due to its members because wages had increased under the present contract by
about 9.5 per cent, against an inflation rate of nearly 13 per cent.  The term
of new contracts is negotiable but if it is more than one year, the union will
demand a cost-of-living index formula.

The union now represents a majority of workers in the primary pulp and paper
industry in Western Canada, Mr Buchanan said.  The CPU would soon push for one
national contract covering East and West Canada with local issues left for
negotiations at regional level.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1902 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

U.S. electronic mail

BYLINE: BY OUR U.S. EDITOR IN WASHINGTON

SECTION: SECTION I; American News; Pg. 4

LENGTH: 165 words


THE U.S. mail service yesterday crossed a new frontier with the inauguration of
an electronic postal system, known as E-com, for commercial subscribers.

The system started on schedule, despite efforts last week by the Justice
Department to stop it, on the grounds that taxpayers' money should not be used
to finance a service that had not been officially approved.

With the E-com system, subscribers can send computer-generated messages to 25
specially-equipped post offices around the country, which then print out the
messages and deliver them by envelope as regular first class mail.

A single-page message costs 26 cents, and the maximum two pages 31 cents,
compared with 20 cents for a regular first-class letter.

The postal service said the system was for use by anyone such as banks,
insurance companies, credit card companies, and mail-order businesses that could
generate at least 200 messages at one time for transmission to one of the
special post offices.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1903 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Canada banks reduce prime

BYLINE: By Our Ottawa Correspondent

SECTION: SECTION I; American News; Pg. 4

LENGTH: 56 words


CANADIAN chartered banks yesterday lowered their prime rates from 17 1/4 per
cent to 16 1/2 per cent, their lowest level for more than a year.

Further cuts are expected although, for exchange rate reasons, Canada generally
has to keep its interest rates above levels in the U.S.  The prevailing U.S.
rate is 15 3/4 per cent.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1904 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Employers approach bargaining in optimistic mood

BYLINE: David Lascelles in New York

SECTION: SECTION I; American News; Pg. 4

LENGTH: 857 words

HIGHLIGHT: David Lascelles in New York reports on the prospects for the 1982
wage round in the U.S.


This year will be "the testing period" for the U.S. because of all the big wage
contracts that come up for renegotiation, Mr Paul Volcker, Chairman of the
Federal Reserves Board (Fed), said recently as a justification for sticking to
tight monetary policy.

The negotiating calendar is indeed heavy, with the big Teamster and Autoworkers'
unions leading the way, but the chance of these negotiations resulting in
dangerously inflationary settlements or even drawn out strikes seems
increasingly remote.

With the economy in recession, the severity of which is not yet clear, and
unemployment becoming more grim with every plant shut-down, the unions
bargaining position has weakened fast.  Some people are even predicting that
unemployment could rise from its current level of 8 per cent into the double
figures this year -- for the first time in 40 years.  The stark problems facing
many companies and industries could have even more force, particularly for the
four-fifths of the U.S. labour force that is not unionised.

One illustration of the unions' predicament was the recent decision by the
Autoworkers' union formally to sanction the renegotiation of existing pay
contracts.  This reversed a policy that had been undermined anyway by Chrysler
workers' willingness to take big pay cuts to keep their company alive.

Deep recession

The UAW, faced with an autoindustry in deep recession and with previously strong
companies like General Motors and Ford losing hundreds of millions of dollars,
authorised its local bargaining councils to hold talks with employers which
could well lead to reductions in wages and benefits.

Both the UAW and the teamsters -- whose plight is, if anything worse than the
car workers' -- also want to begin this year's wage talks as soon as possible to
try to save jobs and avoid last minute clashes.

In other industries, like the hard-pressed airlines, employees have already
agreed to wage cuts, for the first time since the war in many cases, and workers
in scattered steel and rubber plants have also made concessions at a local level
to keep plants in business.

The result is that employers are, on the whole, approaching this year's
bargaining in a fairly optimistic mood.  The Autoworkers and the Teamsters
usually set the pattern for wage settlements, and if their demands turn out to
be moderate the many smaller unions which follow in their wake will be without
their usual pacesetters.

Some forecasters believe that workers have become more sensitive to the U.S.
economy's problems and are more ready to recognise that high wages are hurting
U.S. competitiveness.

The New York Conference Board, which conducts research into business topics,
predicted last month that wage and benefit increases in the first year of new
contracts negotiated this year will average 8.8 per cent, down sharply from the
11.5 per cent rate of the first nine months of last year.

Both sides

The forecast was made not by a group of economists, but by the Board's labour
outlook panel which consists of representatives of both sides of industry as
well as academics.  The union representatives agreed that wage demands would be
more moderate, they even expected unions to consider wage freezes and
"give-backs" if this was the only way to save jobs.  The traditional pattern of
centralised union bargaining might also give way to more fragmented settlements
geared to specific local problems.

However, in return, they suggested that workers would place greater stress on
job protection or "security bargaining," as it has become known.They also
expected more vociferous union demands for protection from cheap imports that
threaten jobs.

The tone of the labour negotiations will be strongly influenced, of course, by
the pace of inflation, for which the prospects currently seem quite good.  When
the final figures are in for 1981 they are likely to show the first single digit
inflation rate for three years, and forecasts for this year range between 7 and
9 per cent.

If anything, the wage outlook is breeding a sense of complacency which some
people find worrying.They advise against laying too much store by the problems
facing the big traditional unions.

Other unions, like workers in the robust defence-related industries and
telecommunications, have reason to be quite aggressive and may well turn out to
be the new pace-setters.  Fast-growing sectors of the economy like the service
industries which are lightly unionised if at all, show little sign of
moderation.  Executives' pay is rising somewhat faster than blue collar
workers'.

Unbroken spiral

The Fed also seems anxious to dispel any mood of complacency.  For one thing, it
believes that last year's wage settlements which ran over 10 per cent on average
will not affect inflation for some time, and that the wage-price spiral has yet
to be broken.  The Fed also needs to be able to raise the spectre of a rebound
in the inflation rate in order to justify a monetary policy whose severity seems
increasingly at odds with the recession, declining inflation and softening union
militancy.

LANGUAGE: ENGLISH

GRAPHIC: Graphs 1 through 4, U.S. Economic Indicators

                   Copyright 1982 The Financial Times Limited


                             1905 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

BA flights to Tel Aviv under threat

BYLINE: By David Lennon in Tel Aviv

SECTION: SECTION I; World Trade News; Pg. 4

LENGTH: 306 words


BRITISH Airways' scheduled services to Tel Aviv are under threat because of
losses incurred on the route through unrestricted competition by charter
airlines.

The British airline will cut its weekly flights on the Tel Aviv run to three a
week later this month, according to Mr Derek Brady, British Airways' general
manager in Israel.

In the summer of 1980, the company operated seven flights a week on the
London-Tel Aviv route.  Last year, this was cut to five.

Mr Brady reports that the airline, which made an operating profit of £400,000 in
1979-1980 in its Israel operations, is expecting to lose £2m in 1981-1982.  He
said this was caused by the Israeli Government's decision to permit charter
airlines to operate on the route and cream off the business of the scheduled
airlines.

El Al, Israel's national airline, has cut its flights to London from 10 a week
18 months ago to six at present, and more cuts may be in the offing.

The government's open skies policy towards charter airlines has also been
affecting the trans-Atlantic route, and TWA has cut its schedules from 21 weekly
flights in 1980 to five a week at present.

British Airways has notified the Israeli authorities that it will not be able to
continue to operate in the current environment in which charter operators are
allowed to drop their prices when business is slow to pick up passengers at
either end of the run without restriction.

The Israeli aviation authorities and officials from the Tourism are holding
discussions on ways of curbing the air fares war being waged over flights to
Israel.

In the case of British Airways, the effect of the unrestrained competition means
that the company is having to dismiss 20 of its 54 local staff this year and is
transferring its handling at Ben Gurion airport to a local agency.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1906 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Gleam of hope for Dutch chemicals

BYLINE: BY CHARLES BATCHELOR IN AMSTERDAM

SECTION: SECTION I; World Trade News; Pg. 4

LENGTH: 361 words

HIGHLIGHT: IMPROVEMENT IN DEMAND EXPECTED


THE DUTCH chemical industry expects a slight improvement in demand this year
although overcapacity in the bulk products sector will continue to depress
profits.

The industry both in the Netherlands and abroad will have to reduce its capacity
for petrochemical basic products if it is to return to health, warned Mr Evert
Meinsma, chairman of the Chemical Industry Association (VNCI).

Real turnover is expected to rise by 3 per cent this year compared with 1 per
cent in 1981.  Total turnover -- some 90 per cent of which is exported -- rose
by 11 per cent last year to Fl 32bn (£6.8bn) although 10 percentage points were
accounted for by price rises.

If this year's forecast increase in sales occurs then turnover will be back at
the level of 1979.

Exports rose by 12 per cent to around Fl 29bn in 1981 compared with a rise of 8
per cent the year before.  By volume, exports rose 2 per cent compared with a
fall of about 3 per cent in 1980.

The rise in exports is pleasing in view of the fluctuations of the value of the
dollar and revaluation of the guilder within the European Monetary System.

Investments are expected to be around Fl 1.6bn this year, unchanged on 1981 but
slightly higher than the 1980 level.  The numbers employed in the chemical
industry fell by 1,000 to 90,000 last year and a further reduction of 1,000 is
expected in 1982.

Despite the decline in employment in the industry, it last year faced a shortage
of 1,000 process operators.  Most of these vacancies have been filled though
companies should plan their personnel needs further in advance, Mr Meinsma
urged.

The recession in the building industry held down demand for plastic though this
was matched by an increase in the production of fertilisers and pharmaceuticals.

The chemical industry is critical of government plans to impose controls on
potentially harmful products.  Too little account has been taken of business
considerations while some parts of proposed legislation go further than was
agreed within the EEC.  This could harm the competitiveness of Dutch industry,
said Mr Meinsma, who is also general manager of Shell Nederland Chemie.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1907 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Concern over prices in Swiss industry

BYLINE: BY JOHN WICKS IN ZURICH

SECTION: SECTION I; World Trade News; Pg. 4

LENGTH: 245 words


THE RELATIONSHIP between export and import prices in the Swiss chemical industry
has deteriorated in the last few years.

Writing in the monthly bulletin of Credit Suisse, Dr Marc Moret, managing
director of Sandoz, blames this largely on the increases in the cost of
mineral-oil derivatives imported into Switzerland for processing.

The adjustment of sales prices to compensate for dearer imports and higher wage
bills has been possible only in part, according to Dr Moret.

He attributed this to government restrictions on Pharmaceutical prices, the
state of the world economy, and growing international competition from low-cost
countries.

The worsening of the terms of trade, together with a narrowing of profit margins
in the home market, has affected the profitability of numerous companies within
the Swiss chemical industry.

Some have launched restructuring and rationalisation programmes involving
redundancies.  Dr Moret predicted there would be no marked change in the
business environment for the industry during 1982 and no noticeable improvement
of the cost-profit ratio.

However, chemical exports have been rising faster than imports in 1981.  Dr
Moret sees the 12 per cent rise in export value during the first 10 months as
"gratifying." The fact that imports rose by only 3 per cent over the same period
is the result of a smaller increase in tonnage.  In fact, import prices
continued to rise faster than those for exports.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1908 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Rotterdam cargoes fall again

BYLINE: BY CHARLES BATCHELOR IN AMSTERDAM

SECTION: SECTION I; World Trade News; Pg. 4

LENGTH: 316 words


ROTTERDAM, THE world's busiest port, handled less cargo in 1981 than in the
previous year.  A fall-off in the shipment of oil and oil products was largely
responsible for the port's second successive year of decline.

The total tonnage handled fell by 8.5 per cent to 255m tonnes last year.  The
volume of crude oil handled dropped by 21 per cent to 94m tonnes.  Oil product
shipment also fell by 5 per cent to 33m tonnes while ore shipments fell 11.5 per
cent to 37m tonnes.

The decline of Rotterdam's traditional role as an oil shipping and processing
centre was compensated for partly by an increase in the coal trade.  Coal
shipments rose by 23.5 per cent to 14m tonnes -- a greater relative increase
than any other category of cargo.

The volume of other bulk products -- grains, animal feeds and fertilisers --
rose by 9 per cent to 38.5m tonnes.  Container traffic also increased.  The port
handled 1.42m containers in 1981 accounting for 21.5m tonnes of freight, an
increase of 11.5 per cent over the year before.

The total volume of general cargo handled rose by 4 per cent to 38m tonnes.
Containers accounted for 57 per cent, conventionally-packaged cargo for 29 per
cent, roll-on roll-off freight for 10 per cent and lash cargoes for 4 per cent.

Rotterdam expects to handle increasing quntities of dry bulk products up to the
year 2000 and less oil and oil products.  Three times as much coal will be
handled, twice as much grain and nearly twice as many containers.  Total cargo
volumes are still only expected to be around the 1979 level of 293 tonnes by the
end of the century.

The port last year completed the first of three large investment projects.  The
removal of the lock gates on the Hartel canal will allow uninterrupted passage
of barges to the Rhine.  Rotterdam also plans to deepen its approaches to 72 ft
to accommodate larger oil tankers.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1909 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

More tankers in line for scrapping

BYLINE: By Andrew Fisher, Shipping Correspondent

SECTION: SECTION I; World Trade News; Pg. 4

LENGTH: 183 words


GLOOMY MARKET prospects led to the sale of 41 large tankers for scrapping last
year and even more may go in 1982, said the Oslo-based Intertanko (International
Association of Independent Tanker Owners).

Governments or oil companies -- including BP, Exxon Shell and Texaco --
accounted for 15 of the vessels totalling 3.3m deadweight tons, with independent
owners accounting for 26 of 5.6m dwt.

Intertanko said the tankers' average age was about 11 years and they could be
described as first generation VLCCs (very large crude carriers) of over 150,000
dwt.  Their flags were Liberian (16), British (eight), Japanese (seven), Greek
(four), French (three), Kuwait (two), and Danish (one).

The present spate of tanker scrapping reflects the obsolescence of many large
tankers as more oil is supplied from outside the Middle East and the recession
has led to a fuel glut.

Intertanko had already predicted that about 40 VLCCs would be sold for
demolition in 1981.  Of the final total of 41, two were over 250,000 dwt, 35
between 200,000 and 250,000 dwt, and four below 200,000 dwt.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1910 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Clifford Harris wins Natal deal

BYLINE: BY OUR WORLD TRADE STAFF

SECTION: SECTION I; World Trade News; Pg. 4

LENGTH: 248 words


CLIFFORD HARRIS (Pty), a Mitchell Cotts company, has won a R10.8m (£9.9m)
contract in Natal, South Africa, to realign and reconstruct six miles of three-
and four-lane mountain road.

The project, known as the Nkwalini Hill Project, will take 30 months to
complete. The contract gives Clifford Harris three concurrent civil engineering
deals in Natal.

The others are a R15.8m canal project on sections of the Umgeni and Umklanga
rivers and construction of a R13.8m aqueduct in conjunction with Marti Inter, a
Swiss concern.

* Hi-Lo Mechanical Handling of Dunstable has won a £3.4m order to supply storage
and handling equipment to Komplex, the Hungarian trading company, for use in the
Femmankus factory in northeast Hungary.  Hi-Lo is a member of the Piper Group of
Companies.

* Harlow Brothers of Loughborough has been awarded a contract to build egg layer
and rearing farms at Al Karj, Saudi Arabia and to supply a broiler chicken farm
in Sana'a, North Yemen.  The Saudi deal is worth £1.5m and the Sana'a deal is
worth more than £1m.

* Tellurometer, a Plessey company, has won a £1.1m order from the Nigerian
Ministry of Defence to supply MRA 5 microwave distance measuring systems.  The
systems are to be assigned by the Nigerian defence authorities for medium-to
long-range geodetic survey control operations.

* ITT Business Systems of Brighton is to supply a fullyautomatic message
switching system worth around £500,000 to Nadi Airport in Fiji.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1911 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

South Korea surprised by boom in construction

BYLINE: BY ANN CHARTERS IN SEOUL

SECTION: SECTION I; World Trade News; Pg. 4

LENGTH: 664 words


SOUTH KOREAN construction companies surprised even themselves last year nailing
down over $11bn in overseas orders by mid-December, almost 60 per cent above the
projected $7bn in orders anticipated for the year.  Yet, the success comes not
without complaint.

The boomtown days in the Middle Eastern market have attracted a wide range of
foreign construction companies, particularly from Eastern Europe, making
competition keener.  Korea's edge in labourintensive works with the skilled,
highly productive, but expensive Korean workers is being eroded by the
requirement in some markets to use 50 per cent Moslem workers and the necessity
to use cheaper, but less productive labour from other countries.

Requirements to use more expensive local companies' services, on projects often
has also squeezed margins, resulting in the desire by some Korean companies to
move up market to more sophisticated construction projects where foreign
technical engineering has to be acquired for the near term.

Breaking into this market, normally the preserve of American, Japanese and
European companies, may be difficult.  As Mr Lee Byong Chu, executive
vice-president of the Overseas Construction Association of Korea, put it,
"Korean construction companies have been view as vacuum cleaners, there to pick
up the left overs, that is, the basic jobs in the hot sun, building housing,
highways, and sewage treatment plants, but not really equal to more technical
projects despite 10 years overseas experience and proven ability at home."

The recent name change of Hyundai Construction to Hyundai Engineering and
Construction and the merger of the Daewoo group's construction company, the
Daewoo Development Company with the trading arm, Daewoo Industrial, to form
Daewoo Corporation herald more commitment to becoming major contenders for a
full range of projects.  After completion of the next four nuclear power plants
in Korea, for example, the Ministry of Construction is expected to license
Korean concerns involved, including Hyundai and Dong-Ah, to market this
expertise abroad.

At present, 113 Korean construction companies are allowed by the government to
do business overseas.  Some two-thirds of the business is done by the top ten
contractors.  Licensing of overseas construction companies in only certain
markets and as only prime or subcontractors is an official policy that the
industry lives with, but which the Ministry of Construction will not discuss

With fewer Korean companies allowed into a market, "unnecessary competition" is
eliminated, as one major contractor described the situation.

Currently, only 34 companies are classified as class A, that is, eligible as
prime contractors or subcontractors to foreign companies, based on having
secured $150m in overseas contracts in the last three years and, $50m in new
foreign contracts in the first half of 1980.  The classification is to be
reviewed every two years.  The remaining companies licensed for overseas
projects can only work as subcontractors to Korean companies.

To date, Korean construction overseas has been concentrated in the Middle East
which accounted for $7.8bn of the $8.2bn in foreign contracts last year.
Although the Middle East will continue to be Korea's biggest market, companies
are being encouraged to diversify, particularly to Africa and South-east Asian
nations.

Daewoo, already a major contractor in Libya with close to $2bn in projects this
year alone, has work in Nigeria and Sudan as well.  Hyundai, Daelim and
Ssangyong already have projects in Singapore and Malaysia, and the Government is
pushing other companies to work on development projects related to natural
resources, such as liquified natural gas, which Korea must import.

Yet, inroads in these markets will not be without difficulty.  Malaysia and
Indonesia require foreign contractors to use local companies' services as well,
even at times up to 30 per cent of the value of the contract.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1912 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Police chief in Ulster security row

BYLINE: By Brendan Keenan in Dublin

SECTION: SECTION I; UK News; Pg. 6

LENGTH: 295 words


AN UNPRECEDENTED row has broken out between Sir John Hermon, Chief Constable of
the Royal Ulster Constabulary, and the Police Federation, which represents
officers up to the rank of superintendent.

Sir John has criticised the federation's central committee for discussing at its
meeting last November the setting up of a force outside the existing RUC and RUC
Reserve.

The police chief, who was knighted in the New Year's Honours List, published his
criticisms in an open letter because he doubts the confidentiality of federation
business.  His fears appear to have been confirmed when the Rev Ian Paisley, MP,
produced the minutes of the controversial meeting at a Belfast news conference.

The federation committee met to consider Sir John's letter and afterwards said
the type of force discussed was similar to the disbanded B. Specials, which was
part of the RUC.  The committee said it was saddened by what it saw as the Chief
Constable's attempt to denigrate the federation.

However, it deplored the use of a confidential document for political purposes.

The affair could have serious consequences, particularly in the Roman Catholic
community, where it is likely to be seen as evidence of infiltration of the
federation by Mr Paisley's supporters.

Mr Michael Canavan, of the Social Democratic and Labour Party, said any
federation member who voted for the establishment of a force outside the RUC
should be dismissed from the police.

Sir John, in his letter to Mr Alan Wright, federation chairman, said the
discussions at the meeting on November 18 were a matter of serious concern in an
organisation such as the police service in which discipline, propriety and
adherence to professional standards were of such crucial importance.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1913 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Productivity stalemate ends BR pay talks

BYLINE: BY PHILIP BASSETT, LABOUR STAFF

SECTION: SECTION I; UK News; Pg. 6

LENGTH: 565 words


RENEWED talks between British Rail and the train drivers' union, Aslef, were
hurriedly staged yesterday as the union's industrial action over pay got under
way.  But they ended in failure, with both sides refusing to shift their ground
on the crucial issue of improved productivity.

Informal contact will be maintained between the two sides, and neither ruled out
the possibility of further talks before the two-day national strike set for
January 13 and 14.  However, the collapse of the talks, following the failure of
last week's intervention by the Adisory, Conciliation and Arbitration Service,
markedly increases the chances of the strike taking place.

BR called in Aslef officials to try to find a solution to the dispute before the
union's overtime and rest-day working ban began to disrupt rail services
seriously.

After an 80-minute meeting, both sides acknowledged that no progress had been
made.  Mr Cliff Rose, the BR Board member for industrial relations, said he had
re-emphasised the board's difficult position.

The board is refusing to pay the train drivers the second 3 per cent stage of
this year's two-part 11 per cent pay deal because it says Aslef has failed to
deliver a commitment to flexible rostering of working hours.The Government is
insistent that further funding for electrification is conditional on such
improvements in productivity.

Mr Ray Buckton, Aslef general secretary, said he had hoped that common sense
would prevail and that the board would honour its agreement to pay the 3 per
cent to allow negotiations on productivity to begin.  He said he was "disgusted"
with the talks, and added: "I put my head on the chopper to come here.  There is
a big demand from my members that I should come nowhere near BR when they are
being sold down the river."

Both Aslef and BR acknowledged that the start of the overtime and rest day ban
yesterday had not made a major impact on services, though both warned that the
effects of the bans could be variable, depending on the availability of drivers
and the amount of overtime necessary.

Most BR regions reported that the bans had had very little, if any, effect on
services.  Some 23 out of the morning's 34 cancellations on Southern Region were
attributed to the effects of the action, as were another 10 cancellations in the
evening.

Eastern Region cancelled about a dozen trains normally running between London's
St Pancras station and Bedford, but thought a repetition of such difficulties
unlikely.

Most regions, though, were wary about being over-confident.

Brian Groom, Labour Staff, writes: Trade unions in London Transport last night
decided to launch a co-ordinated campaign - including possible industrial action
- aimed at seeking a change in the law so that a cheap fares policy can be
retained, despite a House of Lords ruling against it.

Mr Bill Morris, National Passenger Services Secretary, of the Transport and
General Workers' Union, and chairman of yesterday's meeting, said he believed a
one-day bus and tube stoppage was likely.  "Our prime concern is the effect of
the Lord's decision on services and the jobs of our members," he said.

A committee of full-time officials and lay members of the unions representing
the majority of LT's 62,000 employees, will also seek the assistance of the TUC
General Council and will set up a fighting fund.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1914 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Private steel sector studies aid terms

BYLINE: BY ALAN PIKE

SECTION: SECTION I; UK News; Pg. 6

LENGTH: 333 words


MAJOR decisions on the restructuring of the private steel industry are likely
within the next few months after the publication this week of detailed
arrangements for Government assistance under Section 8 of the Industry Act.

The proposals were outlined by Mr Patrick Jenkin, Industry Secretary, last
month, but most companies had their first opportunity to consider them in full
yesterday when they received written details from the Department of Industry.

Applications for aid under most elements of the scheme close in September,
although it will remain possible to claim help with the cost of redundancies
which result in a reduction in capacity until June, 1984.

But the aid scheme will end if the £22m allocated by the Government is exhausted
before, these dates, and it is expected in the industry that the shape of
possible restructuring plans will emerge by about Easter.

The initial reaction of some private steel manufacturers to the aid scheme was
disappointment that only £22m would be available - particularly when set against
nearly £5bn which has gone to the British Steel Corporation since 1975.

There is now a growing feeling, however, that the level of aid will be
sufficiently tempting to provoke serious discussions among private steel
companies, and could lead to several worthwhile restructuring schemes being
completed.

The aid available to the private sector falls under three categories -
redundancies, closures and other restructuring projects and self-help sectoral
levy schemes.

In its document to the private sector steel companies, which have suffered some
of the worst effects of the recession, the Department of Industry details the
terms on which Government assistance will be made available.

Redundancy support will take the form of an 85 per cent grant towards statutory
redundancy payments, plus a further 85 per cent grant - up to a maximum of £500
per worker - where supplementary redundancy or severance payments are made.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1915 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Alliance bids to find peace

BYLINE: By Peter Riddell, Political Editor

SECTION: SECTION I; UK News; Pg. 6

LENGTH: 262 words


MR DAVID STEEL, the Liberal Party leader, and Mr Bill Rodgers, one of the Social
Democratic Party's joint leaders, will today try to defuse what has become a
highly embarrassing row over who should represent the alliance in constituency
elections.

They are meeting in an attempt to resolve differences which led to the
announcement by Mr Rodgers at the weekend that negotiations were being
suspended.

The signs last night were that the two parties were keen to cool the row before
it gets out of control and provides much-needed political ammunition for the
Conservative and Labour parties.There is thus likely to be a message of
reconciliation after today's meeting.

The need to sustain the alliance between the Liberals and the SDP was the theme
of a statement issued after a meeting yesterday by the SDP leadership.

The scale of the public argument may not have been fully intended, but there is
no doubt of the pent-up frustration among SDP leaders in recent weeks.  This
follows a series of incidents between parties, notably in Derbyshire and at
Greenock, Glasgow, where local Liberals have been challenging Dr Dickson Mabon,
the sitting SDP Member of Parliament.

The SDP view yesterday was that there are genuine problems which were bound to
come out some time and that now the issue has been raised it is better that it
is sorted out in public and as soon as possible.

SDP leaders would like a clear statement from Mr Steel to local Liberal parties
reaffirming the guidelines already announced on the distribution of
constituencies.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1916 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Western Union in business services venture

SECTION: SECTION I; UK News; Pg. 6

LENGTH: 174 words


WESTERN UNION, the large American telecommunications group, has agreed with
English China Clays to form a joint UK subsidiary to provide specialised
business communications services.

The new company, Western Union Global Information Services, will involve an
initial investment of £500,000. It will be owned 80 per cent by Western Union
and 20 per cent by English China Clays.

The venture will operate from English China Clays' headquarters in St Austell,
Cornwall and will shortly launch its first service, for the preparation of
letters from mailing lists, in co-operation with the Post Office.

It will be based on a service called Priority Mail, which Western Union already
operates in the U.S., and use computer to compose the text of personalised
letters for direct mail campaigns by business customers.

Texts of the letters will be recorded on a magnetic computer tape and sent to
the Post Office, which will relay them electronically to regional offices in
Britain to be printed out and delivered by normal mail.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1917 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Civil Service pay comparisons 'valid'

BYLINE: BY PHILIP BASSETT, LABOUR STAFF

SECTION: SECTION I; UK News; Pg. 6

LENGTH: 142 words


FAIR comparisons with outside pay should continue to be the basis of the pay
determination for 530,000 white-collar civil servants if the risk of industrial
action is to be limited, according to Lord Croham, former head of the home Civil
Service.

The Government's abandonment of the comparability-based pay system which stemmed
from the 1955 report of the Priestley Royal Commission led directly to this
year's 21-week-long Civil Service pay strikes, but Lord Croham says that while
substantial change in the pay system was necessary, much of the Priestley
Commission's analysis "remains valid today."

The inquiry, chaired by Sir John Megaw, is due to report by midsummer in time
for the Service's 1983 pay settlement.

The Government is keen to see market forces brought more closely to bear in
determining Civil Service pay increases.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1918 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Grant problems raise computer costs

BYLINE: BY ROBIN PAULEY

SECTION: SECTION I; UK News; Pg. 6

LENGTH: 281 words


THE GOVERNMENT's attempts to find a rational way of distributing grants to local
councils have led to a large jump in computer costs, for countless run-throughs
of the various options.  These costs are expected to exceed £1m for rate support
grant work alone in 1981-82.

The Environment Department is also becoming embarrassed about the high costs and
about the extent to which this money is going abroad, because the work requires
a computer technology not available in Britain.

The costs of the work was about £150,000 two years ago.  It jumped to nearly
£500,000 last year, when the work on the new block grant system was under way.

By the end of October, £260,000 had been spent and much of the work has still to
be done.  Unless some of the costs can be allocated elsewhere, officials fear
the bill for the rate support grant run this year will be about £1m or more.

The work is done principally by two companies - Comshare, the UK computer time
sharing bureau based in London which is a subsidiary of Comshare of the U.S.,
and Geisco, a wholly-owned subsidiary of General Electric and Honeywell.

Last year, much of the work was done on Geisco computers in Cleveland, Ohio, and
Rockeville, Connecticut, and difficulties with satellite and cable links and the
time difference meant some unusual working hours for Environment Department
officials.

This year a computer in Europe has made life easier, but American companies and
computer facilities have been needed because the work involves large amounts of
on-line storage requiring a very large core and large software arrangements
which British companies and computers apparently cannot handle.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1919 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Cut in tax on wines urged

SECTION: SECTION I; UK News; Pg. 6

LENGTH: 86 words


THE GOVERNMENT was urged yesterday by the Wine and Spirit Association to cut the
duty on wines by 23p a bottle. It said that this measure would bring Britain
into line with other EEC countries' alcohol taxation and ensure continuing
growth in the market.

This appeal to the Chancellor of the exchequer comes at a time when the European
Commission's case against Britain's duties on wine is still under discussion.
Other wine-producing members of the EEC consider the duties as protection for
prices.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1920 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

New terms sought for 'frontier' oil searches

BYLINE: BY RAY DAFTER, ENERGY EDITOR

SECTION: SECTION I; UK News; Pg. 6

LENGTH: 238 words


NORTH SEA oil companies have urged the Government to introduce new exploration
conditions for "frontier" drilling areas.

Energy Department officials, now working on plans for the next round of offshore
licences, are believed to be considering the suggestion. It is widely expected
in the oil industry that details of the eighth round of licences will be
announced by the Government this summer.

The new licencing round is likely to include a number of blocks in previously
unexplored areas of the UK Continental Shelf, probably in deep water.  According
to the UK Offshore Operators Association, which represents the leading North Sea
companies, the depth of water could be beyond the range of existing production
technology.

As a result, the association has called on the Government to introduce special
licence terms for drilling permits in frontier areas.

Among the ideas for the possible new terms discussed in the industry have been:

* Larger than average exploration concessions.

* An obligation on companies to conduct seismic work only.  After these seismic
surveys the companies would have to drill exploration wells or relinquish the
licence.

* Relaxed relinquishment terms which would enable companies to hold licences, or
a greater proportion of licences, for a longer period than at present.

* Special drilling incentives such as lower royalties and a tax "holiday" on oil
produced.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1921 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Ambitious new charter advocated by Lever

BYLINE: BY TIM DICKSON; EDITED BY CHRISTOPHER LORENZ

SECTION: SECTION I; The Management Page; Small Business; Pg. 7

LENGTH: 1407 words

HIGHLIGHT: Labour's former small firms supremo calls for more radical action


UK GOVERNMENTS have only scratched the surface of what needs to be done for
small business, according to Lord Lever, the independent-minded peer who
co-ordinated the last Labour government's small firms policies.

Lord Lever is now calling for much more far reaching measures to encourage
entrepreneurship in Britain.

* The most pressing need, he says, is to exempt shareholders in private
companies from the "deleterious" effects of capital gains tax and capital
transfer tax.

"I regard the whole area of small business as so important that to sacrifice a
few hundred million pounds of revenue over the next five years would be much
better than paying unemployment benefit and thereby failing to strengthen our
economy," says Lord Lever.  "I really believe that very substantial tax
concessions are justified."

* The massive tax advantages granted to those putting money into pension funds
and life assurance funds should be matched with better incentives to attract
private capital into small firms.  Tax concessions in the recently introduced
business start-up scheme, for example, should be extended.

Wry smiles

* The bank loan guarantee scheme should also be expanded with a view to at least
£1bn being lent by banks over the next two to three years, instead of the £150m
allocated so far.

Lord Lever's radical proposals will doubtless raise a few wry smiles in Treasury
corridors, where some of his more ambitious schemes were knocked firmly on the
head during the last Labour government.

But though his "mini charter" for small firms may well look politically
impractical, his views are nevertheless respected by a wide cross-section of
opinion based inside and outside Westminster.

John MacGregor, the present government's small firms Minister, recently paid
tribute to Lever's achievements, and backbenchers of all parties often seek his
advice.  After all, between 1976 and 1978 he pushed through a large number of
small but significant measures and set in train a new approach in Westminster
and Whitehall which has continued to the present day.

But Lord Lever argues that the initiatives of the past few years should be seen
only as a beginning.  "My own efforts in the last Labour government, and the
efforts of the present government, represent a fundamental change of attitude.
But I must confess that even on their present scale they are wholly inadequate."

Lord Lever rests his case on a comparison with other countries and claims that
small businesses in Britain still suffer from official neglect.  "We are the
Cinderellas of the Western world if you look at what has been achieved in the
U.S., Japan, and even West Germany and France," he says.  "The vision I have is
tht small firms in Britain should play as major a role as they have in these
other economies."

Tax reform, says Lord Lever, is the major priority.  "When we introduced capital
gains tax and estate duty (now capital transfer tax) in this country we did not
appreciate the harmful effects they would have on private companies.  If someone
dies leaving £1m of shares in ICI, the shares can be sold easily enough to raise
money to pay the CGT or CTT.

"The assets of a private company, on the other hand, may actually have the
disposed of to find the CTT and thus a father's wish to pass on his business to
his son is frustrated.  Similarly CGT is a constraint.  If two brothers are
partners in a company and one wishes to pass shares to the other where does the
cash come from to keep the business in the family?"

Ideally, Lord Lever would abolish CTT and CGT for shareholders in genuine
private trading companies "up to a limit of, say, half a million pounds." Shares
would have to be held for at least five years, but at the very minimum, the
concession should be granted on death.

"In this way a rich man might be tempted to put, say, £200,000 into a private
company with whose management he was familier.  He would know that as a result
he could pass the asset on tax free to his children."

Lord Lever argues, though the Treasury and Inland Revenue would take issue with
him, that the loss of revenue would be minimal.  The reforms, he says, would
attract money which would in any case receive tax relief, adding that taxable
wealth created by the strengthening of small enterprises would more than make up
the difference.

Lord Lever is a strong supporter of "Aunt Agathas" and "cousin Georges" -- the
individual investors in small businesses.  Pension funds, he says, have shown a
commendable willingness to help but structurally they are not the right sort of
vehicle to support small enterprises.  "The kind of risks involved are not
suited to a pension fund.  They are geared up to put £10m into GEC but not £10m
into a hundred or so small ventures.  They do not have the local knowledge nor
the business brains nor the sort of individuals I would like to see getting
involved.  The trouble is that there are still far too many barriers in the
individual's way."

Apart from more CGT and CTT relief, Lord Lever supports the sort of tax
incentives enshrined in the present government's business start up scheme.  The
scheme is still widely criticised for being too restrictive and Lever believes
that the current £10,000 upper limit for an investment should be substantially
increased.

"It is much too low to have any significant effect at the moment" he says.

Lord Lever's views on the Government - backed loan guarantee scheme will also
raise a few political eyebrows.  As a leading critic in the past of the banks'
lending policies, he is enthusiastic about the government's initiative but again
feels it does not go far enough.  He would double the £75,000 upper limit for
each loan, and would like to see the 3 per cent "premium" charged by the
government for its guarantee reduced to 1 per cent.

"I think on this basis there would be enough money in the kitty to finance
failures.The government could still break even."

Adds Lord Lever: "£100m or £200m is peanuts.  The scheme should be extended so
that as much as £1bn is lent is the next two to three years.

Vigorous

"With this figure you are talking about a realistic number of new jobs."

Lord Lever is nevertheless impressed by the "tremendous efforts" which UK banks
are now making in the field of small business.  "It will be quite a long time
before these are fully reflected at grass-roots level but they are genuine,
worth while and vigorous.  Head offices will have to keep up the pressure on
branches and encourage managers in the belief that reasonable commercial risks
have to be supported."

Commenting on the quality of advice available to those tempted to set out on
their own, Lord Lever said that the banks, government agencies and other
voluntary agencies are "now infinitely better."

"There are, however, a lot of innocents abroad, either victims of their own
optimism, or of those people who unfortunately exist and who are tow anxious to
get their hands on someone else's money."

Lord Lever would like to see the banks, the Government or, say, enterprise
trusts offering a "quick slide rule" service for investors putting money into
either their own or other people's new businesses.

Lord Lever is hardly likely to get another chance to put his views into practice
in a future Labour administration.  He remains a member of the party though he
is fundamentally opposed to unilateral disarmament, Labour's Common Market
stance, and recent constitutional changes.

He says that the Prime Ministers for whom he worked -- Sir Harold Wilson and
James Callaghan -- were enthusiastic supporters of many of his ideas.  But he
"deeply regrets" that a future Labour government which evinced anything like the
attitudes now being taken by the party "is unlikely to be a great source of
enthusiasm for the direction in which I want to go."

Lord Lever excepts the "best informed" left wingers, such as Eric Heffer and
Norman Atkinson, "who were certainly supporters in the past."

Trade unionists' reluctance to support small firms with enthusiasm, however, is
"understandable," he adds.  "Some smaller firms are hostile to trade unions
though happily believe they are a small minority."

Lord Lever's ideas are clearly ideologically more in tune with the Social
Democrats.  When the new centre Alliance formulates its small firms policy, he
may well be a significant influence.

LANGUAGE: ENGLISH

GRAPHIC: Picture, Lord Lever: "I really believe that very substantial tax
concessions are justified"

                   Copyright 1982 The Financial Times Limited


                             1922 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Venturing spirits

BYLINE: EDITED BY CHRISTOPHER LORENZ

SECTION: SECTION I; The Management Page; Pg. 7

LENGTH: 346 words


EUROPEANS MAY have a lot to learn from American venture capitalists but
nevertheless things are far from perfect in the U.S., according to a leading
authority on the subject, Stanley Pratt.

Called in to a symposium in Luxembourg just before Christmas to report on trends
on the other side of the Atlantic, Pratt drew attention to the tiny size of the
U.S. venture capital business relative to the nation's total investment capital
resources.

His company, Capital Publishing Corporation, estimates that the capital
committed to "venture" investments at the middle of September this year totalled
around $5bn ($2.1bn from private venture capital firms, $1.5bn from small
business investment companies, known as SBICs, and $1.4bn from subsidiaries of
large corporations).  In real terms, he claimed the figure is roughly equivalent
to the total in 1969.

The sum compares, moreover, with the $730bn held by U.S. private and public
sector pension funds, a mere 1 per cent of which would more than double existing
venture capital commitments.

Pratt left his audience of financiers in no doubt that more money would be
eagerly snapped up by budding entrepreneurs.  Recent talk about too many dollars
chasing too few investment opportunities -- echoed incidentally in the UK by
Lord Caldecote's remarks in the latest Finance For Industry annual report -- was
"misguided."

"Venture capitalists in the U.S. are being overwhelmed by the flow and quality
of new investment propositions," said Pratt.  Since venture capitalists
principally back experienced operating managers, it was significant that one
resource in abundant supply in the U.S. was the pool of frustrated managers
within large corporations.

"There are hundreds, even thousands, of potential entrepreneurs -- many of whom
can be successful -- for every venture capitalist."

Pratt admitted that there were cases of too many investors chasing the same
opportunities, as in the "blue chip nifty fifty" -- "but most venture
capitalists have been ablt to find an abundant supply of new investments."

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1923 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Supervisors in a starring role

BYLINE: BY NICK GARNETT; EDITED BY CHRISTOPHER LORENZ

SECTION: SECTION I; The Management Page; Industrial Relations; Pg. 7

LENGTH: 646 words


THE DEBATE over the balance of power between management and the shop floor,
which rages endlessly from the House of Commons to the dinner table, has
neglected the role of the supervisor sandwiched in the middle.

Management up and down the country has been subjected in recent months to a film
seminar, at which companies have been accused of seriously misjudging the
importance of this human link between the structure in which decisions are taken
and the place where they are put into effect.

At the seminar, partly funded by the Manpower Services Commission, two films
produced by Rank Aldis put forward three points: that the partnership between
manager and supervisor is a crucial axis for operating any sizeable company;
that the supervisor's role has been seriously upset by changes in industry and
that management has failed to spot this; and finally, that the principal way to
improve the effectiveness of supervisors is for managers to give them firmer
support and greater assistance.

Straitjacket

Serious problems have been posed for the supervisor's job by new technology, the
creation of specialist labour such as systems analysts who have chipped away at
the traditional supervisor's role, and complex employee relations which operate
in a straitjacket of legal rules and where direct union-management contact now
often bypasses the supervisor.

The films illustrate some classis managerial mistakes.  Shop stewards are
informed of manning reductions the company is seeking, but the supervisors are
not consulted -- they are just told to implement them.

A supervisor warns a recalcitrant driver who has clearly been using his lorry to
take detours from his scheduled delivery route in order to see a girl friend.
Under the threat of a union dispute, the management not only fails to back the
supervisor, but does not even tell him why.  The supervisor's arleady weakened
authority is further eroded.

The way out of this difficulty is illustrated in the film by two circles -- one
representing the management's sphere of activity and the other the shopfloor.
The space where the circles intersect is occupied by the supervisor.  The
manager must now be prepared to spend some of his working time not only in his
part of the circle but also in that of the supervisor's.

The films present one route to accomplishing a stronger working bond between the
two jobs.

This involves setting up scheduled meetings between manager and supervisor,
seeking out what each means by the world co-operation; structuring the
relationship so that each knows who is responsible for what, but organising a
mechanism so that a partnership can be struck up on the way decisions should be
taken and implemented.

Senior managers watching the films believed that the problem they identified was
common throughout many company structures.

John Tavare, one of the CBI's regional chairmen, said at one of the film
seminars that the whole issue of relations between UK management and managed
provided enormous scope for improvements.

The theme (and indeed the title of one) of the films is certainly the breaking
down of a characteristic that is frequently blamed for much of what goes wrong
in British industry -- "you've got your job and I've got mine."

Further information is available from: David Rennie, Marketing Manager, Rank
Aldis, PO Box 70, Great West Road, Brentford, Middlesex TW8 9HR (tel. 01-568
9222).  The two films, entitled "You've got your job -- I've got mine" and
"Building the partnership," can be hired for three days at a cost of £65 each,
for ten days for £90 each or bought for £420 each, or both together for £100,
£130 and £700 respectively.  One copy of a handbook is supplied free with each
film; extra copies are available at £2 each.  Training resource material is also
available at a cost of £15.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1924 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Dissipate New Year gloom with an exotic international festival

BYLINE: BY JOHN CHITTOCK; EDITED BY ALAN CANE

SECTION: SECTION I; Technology; Video and Film; Pg. 8

LENGTH: 1008 words


FOR THOSE who face the New Year with trepidation or gloomy resignation, one kind
of tonic which can be rationalised as dedication to the job is to attend a film
festival, video conference or exhibition.  Birmingham and Wembley apart, there
are planty of other exotic locations to choose from -- ranging from provincial
France to New South Wales, Portugal to Florida.

Indeed, choosing is the heart of the problem -- once the cost of attendance has
been justified.  It really is a serious problem because many of these events are
an inefficient use of executive time, while others offer a unique chance for
those deeply involved in special subject areas or industries.

Thus the Berlin International Agricultural Film Competition later this month
must be, for many in the food business, an original way of seeing what other
countries are up to; next month's International Festival of Scientific Films in
Belgrade will almost certainly have a strong Eastern European entry -- the
science film reigns supreme in these countries, excelling as a source of
information on new developments; and industrial designers ought to be flocking
to Budapest in March for the 9th Festival of Films on Industrial Design.

But surprisingly, farmers, scientists and industrial designers will not be
queuing up in their hundreds to attend these events.  Experience indicates that
the majority of delegates at festivals are those heavily committed to the medium
rather than the message; which is a pity, because there are fewer better ways of
gleaning industrial and technical intelligence in a new perspective.  At one
International Industrial Film Festival in Florence, I found sitting next to me
an Italian shoe manufacturer -- who had popped in to see how his competitors
were coping.

It may seem an exaggeration, but there are film festivals held around the world
devoted to many of the major interests of modern society.  Thus architecture (in
Bordeux) the environment (Provence), mountaineering (Turin), tourism (Tarbes),
maritime (Toulon), music and choreography (Santander, Spain), housing and
planning (The Hague), training (Biarritz), aerospace (Amsterdam), disabled (Los
Angeles), economics (Brussels), religion (Valladolid), sailing (La Rochelle),
anthropology (Paris), even fairy tales (appropriately, Odense -- birthplace of
Hans Christian Andersen).

This is only the tip of the iceberg because some subjects, such as architecture,
science and tourism, are covered by a number of festivals in various
countries.Attendance is almost invariably open to anyone ready to pay the
delegate enrolment fees (except for a restricted military film festival at
Versailles, no longer publicised); and even if the task of viewing films for
two, three or more days is tackled less than comprehensively,

Strong pitch

For those who really are more concerned with the medium rather than the message,
there is a bewildering choice of conferences and exhibitions.  Few would argue
that the most important of these in the video business are the annual VIDCOM
conference and exhibition in Cannes, the Consumer Electronics Show in Chicago
and the Radio and Television Exhibition (Funkausstellung) in Berlin.  Other
events compete, however, such as the Professional Video Show in London, and the
regular U.S. events of the International Tape Association.

London is making a particularly strong pitch in 1982 to steal some of this
world-wide attention.  This month we have Communication in the Eighties.  In
May, the 2nd International Video Week will be held (incorporating The Economist
Video Conference and the 2nd International Video Festival organised by the
British Industrial and Scientific Film Association); this runs on into the first
UK Consumer Electronics Trade Exhibition at Earl's Court.  In September, the
London Multi-Media Market will be held -- a bold attempt to bring the producers
and distributors of programmes away from their traditional haunts in the South
of France to the grey waterside of Tower Bridge.

For Britain, 1982 is also Information Technology Year and also the time for the
biennial International Broadcasting Convention at Brighton (a well-established
exhibition and conference, one of the most important in the calendar for
broadcasters).

Television broadcasters also have a further dilemma in the proliferation of
other events, too many of which are too important or respected to dismiss out of
hand -- such as the Golden Rose of Montreux Television Contest, the Edinburgh
Television Festival, the MIP-TV programme market in Cannes, and numerous
equipment exhibitions (in the U.S., those held by the National Association of
Broadcasters and the Society of Motion Picture and Television Engineers; the
Berlin Funkausstellung already mentioned; and the biennial Montreux
International Television Symposium -- which alternates with the Brighton
International Broadcasting Convention).

Is it all really worth it?  Regrettably, for those who find conferences and
crowded exhibitions no joy, even in Las Vegas, it usually is.  Manufacturers use
some of the major events (especially those mentioned above) to launch new
products; buyers and sellers of hardware and software do more international
deals in one day than might be possible in one month back at base; and --
perhaps most important of all -- one gathers a perspective.

For me, trying to unravel this increasingly complicated business, the latter
benefits is the most important.  Putting one's ear to the ground to collect the
latest revelation is not my style; rather standing on tip toe to see over the
crowds and detect which way they are moving.

And which way are they moving?  What does the year of 1982 promise?  Even in
this highly abridged round-up of world festivals and events, some clues are
evident.  Film just will not go away; it holds a mystique, creates a passionate
following, that video will find hard to emulate.  But the integration of the
media -- of the cinema, video, broadcasting and print -- is written on the wind.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1925 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

HP calculator as controller

BYLINE: BY ALAN CANE; EDITED BY ALAN CANE

SECTION: SECTION I; Technology; Pg. 8

LENGTH: 462 words


HEWLETT PACKARD, the California-based electronics giant, seems set on taking to
the limit the cult of portable, intelligent electronics for the professional.

Its latest step is a device which allows a hand-held, battery powered calculator
to control a string of other electronic machines including measuring
instruments, printers and memories.

It calls the new device the HP-IL (Hewlett Packard Interface Loop), and it is
simply a micro-sized local area network (microlan?).

HP-IL will not work on any old calculator, however.  It is designed specifically
for the HP-41C and HP-41CV machines, immensely powerful calculators which are
virtually hand-held computers.  And not for novices either -- the 41C, the HP-IL
and the accessory devices are intended for the professional.

A local area network is a way of connecting together a number of devices,
typically minicomputers, word processors and printers, so that information can
be passed speedily, accurately but economically between them.

HP-IL takes this concept to the hand-held device level.  The system comprises a
special module which plugs into the calculator and a closed loop of two-wire
cable.

Individual devices -- memories or printers -- are attached to the loop.  Up to
961 devices can be attached to any one loop and there can be 100 metres of cable
between one device and the next.

Commands from the controller -- the calculator plus module -- are received an
transmitted by every device but acted on only by the device specified by the
controller.  This does mean, however, that failure in any one device will put
the entire loop out of action.

Commands and data move round the loop in one direction and at speeds of up to
40,000 bits a second -- small beer compared with the 3-10 million bits rate on
full sized lans, but adequate.

Hewlett Packard sees the introduction of HP-IL as significant for the company.
It is supporting the concept with an interface card to link the loop to HP
personal computers, a fully programmable multimeter, a digital tape cassette
drive and a thermal printer/plotter.

By mid-1982 it intends to introduce an HP-IL version of its 80-column printer, a
video interface and an RS-232 (conventional networking standard) interface.

It has also announced a converter designed to connect the internal electronics
of measurement instruments to the loop.

For the cost-conscious, the loop makes it possible to control a wide variety of
digital devices for the cost of a calculator (somewhere over £150) rather than a
small computer.

For the user, the loop takes over much of the housekeeping.  Type "print" for
example, and the loop controller will find a printer if there is one on the loop
and set it to work.

More on 03446 3100.

LANGUAGE: ENGLISH

GRAPHIC: Pictures 1 and 2, THE HP-41 hand-held calculator, digital tape cassette
drive and thermal printer plotter, while the Hewlett-Packard Interface Loop
provides the HP-41 mass memory and printing capability.

                   Copyright 1982 The Financial Times Limited


                             1926 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Maritime satellite systems

BYLINE: EDITED BY ALAN CANE

SECTION: SECTION I; Technology; Pg. 8

LENGTH: 157 words


AGREEMENT to ease restrictions on the use of maritime radio satellite systems
within harbour limits has been reached by several countries.

Restrictions on the use of radio within ports and territorial waters date back
to the days when ships used spark transmitters which caused interference to
shore-based radio stations.

The International Maritime Satellite Organisation, Inmarsat, sees this changing
attitude towards satellite radio reception in these areas as a major step
towards communicating with ships anywhere in the world.

Inmarsat is the 37-nation organisation set up to establish a new global maritime
satellite communications system to take over from that run by the U.S. Inmarsat
organisation since 1976.

The new system begins operation next month.  The use of satellite terminals in
harbours or territorial waters can be advantageous when docking or seeking
navigational or other information, Inmarsat says.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1927 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Measurement

BYLINE: EDITED BY ALAN CANE

SECTION: SECTION I; Technology; Pg. 8

LENGTH: 56 words


A HANDHELD thickness gauge which incorporates a microprocessor has been
introduced by Elcometer Instruments of Droylesden, Manchester.

According to the company, its model 255F, costing £475, can measure the
thickness of all non-magnetic coatings on a ferromagnetic substrate to an
accuracy of between +/-1 and +/-2 per cent.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1928 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

On spot invoices for tanker supplies

BYLINE: NICK GARNETT; EDITED BY ALAN CANE

SECTION: SECTION I; Technology; Pg. 8

LENGTH: 325 words


A CAB-MOUNTED invoicing system for tanker trucks supplying oil and gas products,
which the manufacturer says reduces product wastage as well as improving the
supplier's cash flow, is being introduced to the UK and European markets by
Brooks Instruments.

The micro-processor based computing register, which costs £1,500 in basic form,
is designed largely for trucks supplying kerosene, gasoline, gas oil, derv, and
liquid petroleum gas to small companies, farms and domestic users.  There are
estimated to be about 2,400 vehicles in the UK doing this job.

The machine, Obis 800, cannot be used for the supplying of fuels direct to
filling stations.

The unit not only carries out on-the-spot invoicing but also keeps an
inventory-billing record.

Security

The company, part of Emerson Electric which has been selling the model in the
U.S. for the past 18 months, says the unit also has security and maintenance
advantages.

The meters which actually dispense fluid tend not to register amounts when the
discharge is at a trickle.  This can cause wastage and also allows some room for
theft.  Because the invoicing unit is so sensitive, even the smallest amount of
liquid is billed up on the register.

There is also an automatic print-out of the bill, when an undue delay occurs
between finishing the supply of liquid and the truck driver pressing the Obis
keyboard to supply the receipt.

Through print-outs of delivery times on the receipts, a supplier company will
also be able to identify how much time a particular driver spends on the road
between fuel drops.

This feature, however, which could cause a negotiating problem with shop
stewards in unionised companies, can be removed from the unit's programming
capability.

Four levels

Obis is compatible with virtually all supply meters and provides for up to four
levels of tax to allow it to be used in those countries with complicated tax
structures.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1929 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Controller

BYLINE: EDITED BY ALAN CANE

SECTION: SECTION I; Technology; Pg. 8

LENGTH: 46 words


A NEW version of the Conair Churchill Mark 2 oil-circulating temperature
controller has been introduced by the Uxbridge company.  It claims that the
electronic control conserves energy and the redesigned cabinet eases access for
service engineers.  More from 0895 58181.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1930 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Galleries in 1981;
This happy Heritage

BYLINE: by WILLIAM PACKER

SECTION: SECTION I; The Arts; Pg. 9

LENGTH: 1104 words


Any one of us would be hard put to it to argue convincingly that 1981 was a good
year for the visual arts in this country: interesting of course, as always, and
at times memorable, for most certainly, as in any year, there have been
important, wonderful, beautiful things of all kinds to see, things that sharpen
our perceptions, extend our experience and understanding, enrich our lives --
and a year that has encompassed Picasso in all his profligate variety at one
extreme, and Old Japan, so exquisitely rarified, at the other, cannot have been
entirely bad.

But good?  Not really, for it is easy enough to point to equal treats in any
year past, and all such must be expected, even commonplace, so long as London
holds its place as one of the great art centres and clearinghouses of the world.
We are very much spolit still, and in difficult times our artists, dealers,
scholars and curators continue to do better by us than we deserve.

The art world has been embattled long enough, under actual attack under
successive administrations for a decade and a half at least and so inured to the
circumstances of crisis have we all become that a moderated increase to an
already inadequate public grant, a cut in real terms, is accepted as a kind of
victory for the ministry concerned -- the quality of mercy indeed.

But there was always hope, the feeling that support was there at least in spirit
and would be given when things got better.  Now the pessimism is palpable and a
sense of disillusion and defeat more general than ever I can remember.

And where the arts suffer in general, the visual arts suffer rather more and
modern art most of all.

One of the peculiarities of our society, which would be very much to our credit
were it deliberate policy, is that in the face of that clear national hostility,
it has contrived and sustained the most generous, comprehensive and indeed the
best system of higher art education in the world.  The artists that come out of
it have been over many generations as good as any, though we are inclined still
to sell them grievously short, but more than that, it has produced artists in
all the fields of applied design and in all the crafts that are second to none.
And if we have not the nous to employ them in industry and commerce at home,
they are made very welcome abroad.

But art education is its own beast, and no one who has not been through an art
school can readily understand or perhpas take seriously its peculiar processes.
Academics and administrators distrust them, and the local authorities who
finance them are too often too happy to starve them out, for we all know what
art students are like.  Our art schools quite simply have too few friends at
court, and if economies must be made, where better to make them.  Across the
country, establishments have been pared down so much that courses of all kinds
are becoming impossible to man, and as old equipment lies unusable and
unreplaced, impossible to teach.  The artists and specialists who breathed life
into them as regular visitors are no longer allowed to call, and the quality of
those courses falls

Our national proverty is too easily made the villain of it all, but the real
villain is our national poverty of spirit and sensibility.  Our leaders plead
our economic straits, and in the short term we might even believe them; but this
has been going on for years, and it is at last borne in on us that we are seeing
not a mere temporary, though so familiar expedient, but the later stages of a
well-established and continuing process.  Lip-service is duly paid to the arts
in general and to the Heritage, a most useful term that marks the speaker as a
civilised man, and can mean anything or nothing.  But we should remember that
without the living arts (and that means all of them -- Mr St John Stevas in a
recent article quite rightly said how important they were without once
mentioning or, in the context, intending the visual arts) there is no Heritage,
for the culture dies.  And how visible for the most part that Heritage is.

Well, it is all very depressing, but life goes on and perhaps, pershps. . . .
Certainly the good things of the year should not be discounted because times are
bad, and some good things were very good indeed.  Henry Moore in Madrid (and
later Lisbon and Barcelona) was an extraordinary personal triumph for a great
artist, and a considerable coup for the British Council as well; and if Moore
thus crowned his career, his sometime assistnat, Phillip King, established
himself as a major artist in mid-career with his show at the Hayward.  That was
but one of the Arts Council's several successes, what with Hopper early in the
year and late Sickert and Lutyens at its close.  Picasso's Picassos were simply
magnificent.

The Royal Academy too had its moments, starting with its flawed but stimulating
New Spirit in Painting in the New Year, and seeing it out with its astonishing
double-header, The Great Japan Show, which, if you have yet to see, see
immediately.  The Tate had a quiet year, with Rauschenberg showing off his clay
feet, and de Stael disappointing -- but Patrick Caulfield looked very well
indeed and won deservedly a more general audience, and Sculpture for the Blind
was as honourable initiative.

The Whitechapel had a good year, finishing off splendidly with its creditably
ambitious survey of British sculputure in the 20th century.  Riverside showed
Kossoff, Hockney, Leger and Heron, quietly building up its name.  The Gonzaga at
the V and A, Kennington au unlooked for treat at the Imperial War Museum, Goya
at the British Museum, Spanish painting at the National Gallery, London
Delineated at the Museum of London, Tolly Cobbold at the ICA, Giacometti and
Craigie Aitchison at the Serpentine -- everywhere so much to see, and as always
so much unreported, for which I can only offer profound regret.  I regret very
much, too, that I was out of London so seldom.

And as for the private galleries, it continues to amaze and delight me that
dealers should survive at all, let alone in such numbers and with exhibitions of
such quality.  The Sisley show at Artemis would have been outstanding in any
year, and there were besides Schwitters at Marlborough and recently some lovely
Japanese paintings at Milne Henderson.  Sandle at Fischer, Weshke at Moira
Kelly, Kinley at Kasmin, Bridget Riley at Rowan, Nigel Hall at the new Rowan
Juda, the list goes on and in inevitably invidious.  To all of them, those I
reviewed, those I visited, those on my conscience still, I would like to wish a
most prosperous New Year.

LANGUAGE: ENGLISH

GRAPHIC: Illustration, Sirens abroad (C 1937) from the Sickert exhibition which
was held at the Hayward Gallery

                   Copyright 1982 The Financial Times Limited


                             1931 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Milan opera;
Lohengrin

BYLINE: by MAX LOPPERT

SECTION: SECTION I; The Arts; Pg. 9

LENGTH: 956 words


To an outsider, the enigma of La Scala remains as tantalising as ever: a theatre
reportedly in perpetual economic woe, prone to periodic upheavals of
administrative and artistic direction, that nevertheless contrives to bestow on
the visitor an air of sovereign ease, a sense of things fitly and fully done
(even when the opposite is in fact nearer the truth), an assurance of remaining
first among the great opera houses of the world.

Only one opera was on the roster for the opening month of the season at the big
house -- Lohengrin, a new production by Giorgio Strehler in designs by Ezio
Frigerio, conducted by Claudio Abbado.  (At the Piccola Scala, there is a
fascinating double bill of Sciarrino's Vanitas -- a world premiere -- and
Kagel's Variete, an event that deserves a notice to itself.) The Milanese were
heard to mutter mutinously about the paucity of the cartellone; yet after a
Sunday Wagner matinee, offered with the kind of natural grandeur that is
beginning to seem an exotic operatic commodity, one was in a mood to criticise
neither Scala ways nor Scala means.

It was a rounded, unified Lohengrin, very well sung (at least by the not very
elevated standard of the day), in the main stirringly handsome to behold, and
staged with a largeness of theatrical gesture that did not preclude a sizeable
measure of fidelity to the text.If the conductor's part in it is singled out
first, that is no less than it deserves.  For in his first experience of Wagner
in the theatre.  Abbado has placed himself, immediately and without
qualification, among the tiny elect of the postwar Wagnerian generations.  The
all - purpose, neither-here-nor-there efficiency of so many recent concerts with
the LSO was far indeed from this rapt encounter.

Before approaching Wagner, Abbado bided his time; Bruckner symphonies came
first, and much middle-period Verdi (a route of considerable "parallel"
relevance).  Lohengrin, the first Wagner opera that Italy saw and heard, has
always held a special place in Italian affections.  Yet what was remarkable
about the performance was not so much its specifically Italian attributes --
although the peculiarly focused brightness of the violins (marvellous body!),
the savoury, substantial character of the orchestral ensemble, and the lyrical,
"connected" quality of the vocal accompaniments all seemed, in the best way, to
pronounce national origins -- as the authoriticity of its sweep, the unswerving
development of a long musical and dramatic line.

A Lohengrin at once lyrical and large-sighted, noble in response and powerfully
exciting, is the real, royal thing, capable of casting a spell quite as potent
as the one exercised on the work's earliest admirers.  The stage trumpets went
out of tune; almost everything else glowed.

Eight clustered piers, adamantine-black and towering, dominate the stage.
Darkness reigns, shrouded in smoke, shafted by rays of oblique light -- white,
red, and blue; at climactic moments the columns move apart to reveal the full
expanse of the stage, and to expose a back-projection (caught on a backdrop made
of square glass panels) of a mountainous river landscape, misty and wild.  The
style of the decor owes its whole impulse to Romanesque architecture; the aura
of a Christian world still largely in darkness, with pagan creeds and violent
actions threatening every allegiance was encompassed with magnificent aptness by
so vast and looming a scene; the modish, dead-spirited black and gunmetal
colour-mixtures of modern Bayreuth, and specifically of the latest Bayreuth
Lohengrin, are miles removed from this eloquent, sternly beautiful vision.

The designer failed only, as Lohengrin designers often do these days, in
defining contrasts of day and night (it was a semi-perpetual night in this
Brabant), and in sensibly handling the swan-boat emanation (the swan was here an
instignificant blot on the lower right of the panels).  Strehler failed likewise
in Lohengrin's first apparition and final departure; otherwise there could be
nothing but praise for the massive assurance, slowpaced and inevitable, with
which he manipulated crowds, and cohorts in glittering mail and armour.

Against such a background, and with superbly sensitive, never finical
adjustments of lighting, the battle of light and dark forces was worked out with
the severe discipline and control of the famous Scala Somon Boccanegra
(strangely, Ortrud's silently palpable presence in the first act went for
little).  A word for the chorus, singing in a rather strange brand of German,
but quite as lyrical in style and colourful in tone as the orchestra.

La Scala no longer plays Lohengrin in the vernacular; and Italy no longer
produces singers like Pertile and Merli, Caniglia and Galeffi, Pinza and
Stignani, recently Del Monaco and Tebaldi, able and willing to undertake the
leading roles.  The current casting is "standard international," but (luckily)
caught in more impressive form than that phrase usually suggests.

All three leading Lohengrins -- Rene Kollo, Siegfried Jerusalem, Peter Hofmann
-- have had a showing here.  The hero of my performance was Hofmann, and I liked
him a good deal more than I have in London, Bayreuth, and Salzburg: vocally
still a shade dry, less poetic in tone and in verbal utterance than in
appearance, but far better able to stay the course of Act 3.

All the principals have developed their roles in other productions; under
Abbado's loving and insistent guidance, all except Nimgern seemed to take a new
care over musical detail, a new pleasure in spinning out phrases.  This was a
Lohengrin with values correctly decided and admirably fulfilled.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1932 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Birmingham Rep;
Cinderella

BYLINE: MICHAEL COVENEY

SECTION: SECTION I; The Arts; Pg. 9

LENGTH: 357 words


There is no shortage of seasonal fare in Birmingham: Danny La Rue is in Aladdin
at the Hippodrome; half the cast of BBC TV's Hi-De-Hi! are in Babes in the Wood
at the Alexandra; and the city's major subsidised house, the Birmingham Rep, has
dusted down the 1957 American TV version of Cinderella by Rodgers and
Hammerstein.  Julie Andrews was the original star.  She had made her name on
Broadway three years earlier in The Boy Friend and it is a pleasant coincidence
that John Hewer, who played opposite her on that occasion, turns up in the
Birmingham show as the portly, rubicund King.

Although Tommy Steele had a success as Buttons when the show came to London in
1958, the stage version has never rivalled other Rodgers and Hammerstein
musicals in popularity.  One sees why in Bill Pryde's half-hearted revival.  The
music and lyrics are feeble almost beyond belief.  I am not muself a devotee of
the Rodgers and Hammerstein who wrote Flower Drum Song and The Sound of Music in
the late 1950s, but in Cinderella we have the same sort of turgid lyricism
without the saving grace of memorable melody.

Only two numbers, in the second act, have any intrinsic merit: "Ten Minutes
Ago," which bears a faint resemblance to "Some Enchanted Evening" from South
Pacific, and "Do I Love You Because You're Beautiful?" Both are sung by the
Prince and Cinderella.  Andrew C. Wadsworth and Yvonne Sadler have the right
old-fashioned vocal sound, but fail to inject the numbers with any sort of
romantic urgency.

They are not helped by a production that is singularly charmless and a series of
designs by Geoffrey Scott that are cumbersomely hideous.  The transformation
scene is hopelessly botched and the rest of the principals sink unaided by the
book.  Don MacLean as Buttons and Bob Grant and Joe Black as the Ugly Sisters
finally throw in the towel during the haunted bedroom scene, indulging in some
crude, poorly executed knockabout, much of it achieved, I am happy to say, at
the expense of the scenery.  The costumes are frightful and the whole occasion
lacks any trace of magic or style.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1933 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Imperial, New York;
Dreamgirls

BYLINE: FRANK LIPSIUS

SECTION: SECTION I; The Arts; Pg. 9

LENGTH: 364 words


The challenge of writing a Broadway musical about a top singing group must
surely be the need for a string of hit songs to substantiate their supposed
success.  The weakness, but also the strength, of Michael Bennett's Dreamgirls
is that he has put together a long, dazzling musical about a group modelled on
the career of The Supremes without one song in their repertoire that has
anything like the power of The Supremes' hits -- or any of the hits of the late
1950s and early 1960s.

Instead, the musical concentrates on the backstage machinations of the black
impresario who engineered the girls' careers from the beginning at a stage show
at the Apollo Theatre in New York to their finale doing disco music in sequinned
satin gowns.  The personal conflicts are well constructed round the early
decision to have the group led by a pretty face instead of a beautiful voice.
The lady with the voice, a powerful and large figure played magnificantly by
Jennifer Holliday, goes off on her own, although she leaves behind her
song-writer brother who sticks with the group and falls in love with his
sister's replacement.

And as the girl's career waxes, Tom Eyen's carefully managed book follows the
waning career of James Thunder Early, a singer modelled on James Brown and
played with extraordinary voice and acting by Cleavant Derricks.  He is
constantly drawn to the group by his affair with a second of the three original
Dreamettes (later to be called the Dreams "because now they are women").  The
third, almost needless to say, is the lead singer with the pretty face who ends
up marrying the impresario, a no-nonsense tyrant played efficiently by Ben
Harney.

Michael Bennett, creator of A Chorous Line, is well served in his up-to-date
backstage drama by Robin Wagner's steel-tube and Klieg-light dominated set.
Henry Krieger's music and Tom Eyen's lyrics are shown off to much better
advantage in the songs that express the backstage drama interwoven among the
girls' public appearances.  The production is big, brassy and bold, a child of
the 1980s that has recreated the past in its sparkling but shortisighted and
finally superficial self-image.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1934 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Lyric Studio, Hammersmith;
The Ascent of Wilberforce III

BYLINE: ROSALIND CARNE

SECTION: SECTION I; The Arts; Pg. 9

LENGTH: 331 words


Auden and Isherwood established the craze for mystic mountaineering with The
Ascent of F6 in 1936.  Chris Judge Smith has now produced the script for a
musical extravaganza which is both a parody and an expansion of its forerunner,
though not a particularly successful one.

In both cases, the climb symbolises a quest.  The former presents a serious
attempt at self-knowledge; the latter offers an exercise in multiple debunking,
targets ranging from Madam Blavatsky and the theosophists, to humanism and the
League of Nations.  But there is no need to be deterred by these literary and
philosophical roots; the pleasures of the show arise as much from its musical
arrangements and theatrical effects as from the comedy or challenge of the
subject matter.

Lord Melior and his son, the Hon Tristram, are the British contingent in a 1929
international expedition to conquer the Himalayan peak of the title.  His
lordship (Godfrey Jackman) is a committed socialist who shouts at the native
porter and leads the "peers for progress" group in the House.  Tristram (Peter
Harding), gauche and eager, shares his father's convictions, together with a
burgeoning admiration for Herr Hitler's plan for a united Europe.

An American, a Norwegian and an Italian comprise the foreign element, though a
crackpot Englishwoman in disguise (Carole Harrison) takes over from the latter
at the last minute.  She is a disciple and lover of Alistair Crowley who was her
climbing instructor in the Lake District and her sexuo-religious ecstasy quickly
carries this promising mishmash over the brink to silliness.

However, period flavour offers a fine opportunity for composer J. Maxwell
Hutchinson to indulge in stylish musical pastiche.

The climbing scenes are most ingenious -- synthesised spookiness backing clumsy
figures on the snowy rock face (half the acting space is built-up and covered in
white fun-fur).  Dermot Hayes is the designer, the director is Ronnie Letham.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1935 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Adelphi;
Iolanthe

BYLINE: ARTHUR JACOBS

SECTION: SECTION I; The Arts; Pg. 9

LENGTH: 374 words


"Why weep these hot, unnecessary tears?" A line from Iolanthe suggests itself as
a counter-coment to the prophecies of doom now being made about the Gilbert and
Sullivan tradition.  True that the D'Oyly Carte Opera Company has announced that
it will cease productions after the present London season closes at the end of
February.  But I suspect that some astute new backer is waiting in the wings,
not "to pick up the pieces" (for the performing troupe is not in pieces) but to
re-invigorate a still valid renewable tradition of playing the operas.

A vigorous and enjoyable performance last Saturday emphasised that D'Oyly
Carte's great strength springs from real (not microphoned) voices and a
traditional orchestra in a theatre that can get the best advantage from both.
To serve the current London season, the Adelphi band-pit has been enlarged and
the orchestra strengthened to Sullivan's original size of about 35.  In a
comparison with the current HMS Pinafore at the Collegiate Theatre (the Singers'
Company production, with Alec McCowen as Captain Corcoran) the D'Oyly Carte's
superiority rests precisely on the superiority of natural overmicrophoned voices
and on the subtlety of Sullivan's original orchestral score as against a reduced
and partly electronic instrumentation.

D'Oyly Carte's new musical director, Alexander Faris, is doubtless to be
credited for much of the orchestral and choral accomplishment in Iolanthe,
though it was his associate, Fraser Goulding, who conducted this performance.
John Reed, his nimbleness belying the 20 years he spent as the company's
principal compedian, returned in a guest capacity as a delightful Lord
Chancellor.  Rather too many of the other soloists showed the need of a vocal
coach to smarten and very the inflection of their spoken lines, but Patricia
Leonard knew exactly how to treat the role of the Queen of the Fairies.

A guest artist better known at the English National Opera, Sandra Dugdale, sang
Phyllis's music charmingly, with an interpolated (but not inappropriate) cadenza
going up to high D.  But her appearance was unbecoming and we were left
uncertain whether her native Northern vowels were intendedly part of this
class-comedy or not.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1936 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Tying up the Lloyd's Bill

SECTION: SECTION I; Editorial Comment; Pg. 10

LENGTH: 706 words


IN THE NEXT few weeks, the Lloyd's Bill of Parliament, one of the most important
programmes of private legislation ever to be promoted by a City of London
institution, is due to come before the House of Commons for a third reading.
Before that date, the Lloyd's insurance market needs to resolve several
controversial issues which could affect the passage of the legislation.

Already Parliament has decided, rightly, that it would be wrong for Lloyd's to
be granted extensive self regulatory powers, supported by law, if there are
basic conflicts of interest in the market's structure which are likely on
undermine the effectiveness of those powers.

Interests

For that reason Parliament decided that Lloyd's insurance brokers, the buyers of
insurance and the agents of the assured, should not own or control the
underwriters, the sellers of insurance.

There were other conflicts of interest which were described in the later
readings of the Lloyd's Bill in committee which have raised other concerns.
Accepted commercial practices in the Lloyd's market were detailed which showed
that the interests of underwriters, clients, and brokers could conflict in
fairly commonplace transactions and commercial arrangements.  Lloyd's will have
to demonstrate to the outside world that it is prepared to examine its methods
of doing business in order to minimise the possibility of abuse within its
market.

The question of conflicting interests is at the heart of a more sensitive issue
in Lloyd's programme of legislation.  Lloyd's is seeking from Parliament a legal
immunity which will protect a new ruling council from legal action in the form
of suits for damages by members of Lloyd's and the market.

Problems

Lloyd's argues that without some form of immunity the new council would not be
able to act with confidence in dealing with future problems which arise within
the institution, particularly if it was forced to take action against a powerful
commercial interest, such as a Lloyd's broker.

This argument has considerable force.  It would not be in the interests of
Lloyd's or its members if the council became too reluctant to act because of
fear of legal action by its members.

In drafting this clause, Lloyd's has sought to protect the consumer interests of
the policyholders who buy insurance from the market's underwriters.  They, the
consumers, can sue the society of Lloyd's for damages or any other forms of
liability under the new legislation.  Yet here a tension has been created,
between the interests of those that seek insurance from the market and the
members who put up the capital to allow the market to function.

Each Lloyd's member accepts the principle of unlimited liability when he becomes
a member of the market.  Around three-quarters of the 20,000 members of Lloyd's
do not work in the market and are effectively passive investors.  They have come
to expect that their interests are fully safeguarded by the agents who supervise
their affairs and the Lloyd's market itself.

Some members of Lloyd's are unhappy with the immunity clause because it could
prevent them seeking recovery in the courts for actions taken in the Lloydhs
community by the council which could be against their interests.

Legislation

Lloyd's must ensure that whatever immunity it seeks balances the interests of
the policyholders with those of the investors who put up the capital to allow
the market to function.  More importantly, Lloyd's must ensure that any immunity
does not protect its council members above and beyond the duties which that
council is obliged to carry out under the proposed legislation and future
by-laws.  A sensible compromise on this point may be necessary.

The Lloyd's Bill is of vital importance to London's insurance community.  The
market needs a modern disciplinary framework, and this will be provided by the
Bill.  This vital legislation is unlikely to be implemented until much later
this year, and protracted delay can only weaken confidence in the Lloyd's market
in the world insurance community.

The Lloyd's Bill has rightly received close examination and wide debate, but the
legislation must be enacted as soon as possible.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1937 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

'Doing better with what we have'

BYLINE: By Ian Hargreaves in New York

SECTION: SECTION I; ITT Reorganises; Pg. 10

LENGTH: 1806 words



HIGHLIGHT: He is, for the second time in his life, assembling a conglomeracy of
business interests, ranging from aircraft landing gear to insurance.
EVEN TODAY, Harold Geneen is not far away from ITT.  He works, apparently as
long and hard as ever, in an office at the Waldorf Astoria Hotel, right across
the street from ITT world headquarters.

His formal connection with ITT is as chairman emeritus, an honorary title,
director, member of the board's capital committee and $250,000 per year
"consultant."

These links could be severed later this year when Geneen reaches the board's
mandatory retirement age of 72.  But they have been enough to keep alive
speculation that the creator of the "Geneen machine" still pulls the levers at
ITT, as he did in mid-1979 to secure the dismissal of Mr Lyman Hamilton, Rand
Araskog's predecessor as chief executive.

According to Araskog, Geneen's role today is "in almost every respect the same
as any other director." Geneen's consultancy, says Araskog, is mainly in the
areas of personnel and general strategic advice.  "You can't involve him in the
operating area, because he used to run the place and as soon as you involve him
he starts trying to make decisions and before you know it, it's out of hand."

As for the legend, that Geneen is sitting over at the Waldorf fuming at the
dismantling of ITT, Araskog says: "I don't think he's fuming at all.  I think
he's thinking it will be great when they get their debt-equity where they want
it so they can get to do some of the things I would like them to do."


HAROLD GENEEN did not like windows.  So when, in July 1979, Rand Araskog
inherited from Geneen the leadership of the world's most complex company,
International Telephone and Telegraph (ITT), he also inherited a very dark
office.

The day Araskog ordered the shutters to be stripped away, he discovered two
things: a magnificent line-of-sight view of the mosaic dome of St. Bartholemew's
Church on New York's Park Avenue and a filthy carpet.  "We had to have the whole
thing re-done," says Araskog.  His selection?  Contourless modern, veneered
furniture, a beige carpet, glass doors and not a shutter or a curtain in slight.

For some ITT watchers, this is a Grimm's fairy tale synopsis of ITT's history
since 1959, the year when an aggressive accountant called Harold Geneen launched
14 years of uninterrupted annual profit growth, sucking in the 250-plus
companies which turned ITT from a geographically scattered telephone company
into the world's largest industrial conglomerate.  Last year, the company had
sales of $23.8bn and employed 348,000 people, over half of them in Europe.

The rapid expansion of ITT has been one of the most remarkable stories of
post-war American business.But in recent years it has become clear that there
was nothing magic about Mr Geneen's formula and it is too early to tell whether
the changes made since his departure will bring about the much needed
improvement in the company's balance sheet.

It is also still an open question whether ITT's very size and diversity --
operations in 90 countries and products ranging from Abbey Life Insurance to
Wonder Bread -- made it unmanageable by Geneen, or anyone else.  The principle
of conglomeracy, with the claimed advantages of "synergy" between units, is now
undergoing its biggest test in the world's most celebrated conglomerate.

Certainly since 1973, ITT has seemed to flounder.  Beset in the early years of
the decade by political scandal, the company signed in 1971 an agreement not to
buy for a decade any U.S. company with assets of more than $100m.

In the face of this agreement and of weak economies in Europe and the U.S., ITT
could no longer rely on its chosen means of staying ahead of problems -- to keep
growing in all directions -- and the company's stock price began to slide.  Its
price-earnings ratio collapsed from and average of 15.2 in 1972 to 9 in 1973,
making stock-financed acquisitions inadvisable or impossible.  Today the PE
ratio is still deep in that rut.

As the Geneen machine spluttered, its enemies gloated.  One Wall Street analyst
is fond of pointing out that ITT could have bettered its miserable record of
returning a net (post interest and tax) 3 per cent on assets by liquidating the
company and opening a savings account.

Geneen's mistake, according to this current business school and Wall Street
vogue, was that he concentrated upon quarterly profits growth and size at the
expense of return on assets and sound internal management.  His strategy also
drew the company into excessive gearing, because Geneen believed that in an age
of inflation, debt is cheap at any price.

The unchallengeable part of the argument is that ITT has, in the last three
years especially, suffered mightily from its burden of debt.  Interest payments
cost $686m in 1980, a figure equal to 68 per cent of its net income, and
probably cost at least $790m last year, in an even worse year for profits.  That
is why ITT is now considering selling its huge Rayonier Forest products
division.  This would cut its debt-equity ratio from 40-60 to 25-75.

Thus Mr Rand Araskog, a lanky, somewhat shy, but fierce-tempered 50-year-old
from beyond the back of beyond (Fergus Falls, Minnesota) finds himself on the
spot,

As far as the Geneen-bashers are concerned, Araskog, a Geneen favourite, was
brought in to rescue ITT from the apostasy of Lyman Hamilton, the urbane, former
World Bank man who served briefly as ITT chief executive in 1978-79.  But having
got the top job, it is argued, Araskog saw the compelling logic of Hamilton's
business plan and promptly began to implement it.

The plan was to sell off loss-making, asset-intensive operations, like all the
European consumer product companies and to reorganise around five tightly
defined product lines -- telecommunications, natural resources, insurance and
finance, industrial products and consumer goods, before possibly spinning off
one or more of these sectors.

Since taking office, Araskog has sold almost 50 companies with aggregate sales
of $1bn, not to mention his decision to close a disastrous new pulp mill in
Quebec, which cost ITT a $320m write-off.  He also kept Hamilton's five major
divisions, but crucially has returned a lot of the power to make operational
decisions to the line managers and to the heads of ITT's large European
subsidiaries, like STC in Britain and SEL in Germany.

Every plan from line management is still vetted by financial and operational
corporate executives and its progress is still pursued in meticulous detail by
the men from New York in both written form and in face-to-face meetings.

The difference, as Araskog says, is of style.  Geneen used to run these meetings
each month in Brussels and New York as a circus.  A large group of ITT
executives would watch while Geneen himself engaged a line executive in single
combat.

Today there are half as many big Brussels and New York contests, but there are
many smaller management sector meetings in New York or out in the field, where
Araskog and his key lieutenants (Cab Woodward, finance director, and Richard
Bennett and James Lester, who are effectively joint presidents of the company,
lead the discussion).  "Participative" is the watchword at ITT these days.

Yet the most significant changes ahead for ITT are not those of modified
management philosophy.  They are to do with the fact that ITT has a limited
purse at a time when dramatic changes and therefore opportunities are occurring
in its main business -- telecommunications.

In Europe, ITT is spending over $1bn to develop a digital electronic telephone
system -- System 12 -- to defend its market share in the 1980s and 1990s against
the nationalistic reflex of state-owned telephone companies, which are its main
customer.

Meanwhile in the U.S., deregulation of telecommunications offers ITT the
possibility, at last, of securing a firm footing both as a carrier and hardware
supplier.

In whetever way ITT's strategy emerges from this confusion, and in some respects
it is worryingly late in hatching, it will be costly.  The communications
service side (telex and telephones) is already gobbling up $150m a year of ITT's
frozen $1bn a year capital budget.

Some of ITT's other businesses are also in need of major capital resources.
Continental Banking, the world's biggest bread maker, needs $150m in the next
three years to convert plants from white-bread-only lines to mixed product, to
deal with a sharp drop in white bread consumption.

Even some of the businesses bought in the past five years look unfortunately
capital-hungry.  Eason Oil, for example, has quardrupled its net profits since
purchase in 1977 and increased reserves from 20m to 25m barrels.  But it was
bought as an energy base which ITT simply cannot now afford to build upon.

None of this would be too serious if ITT had a few more strong cash producers, a
role traditionally taken by insurance and finance, which contribute a quarter of
ITT's profits.  More recently Sheraton, where ITT has perfected the technique of
exchanging ownership for a management contract, has contributed the company's
healthiest return on assets record (over 13 per cent pre-tax last year) and a
strong flow of profits ($130m last year).  The heavy industrial businesses like
Automotive and other components, are in the doldrums because of depressed
economies.

When you strip away the textbook sophistry of the 1960s, this is what
conglomerates were, in essence, always about: to balance cycles of products and
geographical regions in order to buck cyclical trends.

The problem is that if, like ITT you successfully buck trends (ITT has not only
avoided the spectacular problems of many other conglomorateurs like
Ling-Temco-Vought, it has also not made an annual loss since Geneen arrived) but
produced only a mediocre financial return, no-one is satisfied.

Talk about ITT's 3 per cent net return on assets may be misleading, because
ITT's asset base is bloated by its huge insurance and financial business.  But
its return on equity, which the company does accept as a reasonable measure, was
in 1980 only the average for the 400 companies in the Standard and Poors
industrial index (14.9 per cent), and that was with the help of a major asset
sale.

When 1981 results are reported shortly, even after a highly beneficial effect
from restatement under new foreign exchange accounting rules, the ratio will be
well under 15 per cent, which was the Target Lyman Hamilton set in 1978.  Today,
says Woodward, with even higher interest rates, ITT really needs to return 18
per cent on equity.  In 1980, General Electric, in some respects a comparable
company, returned 19.5 per cent.

In Araskog's world, structures and theories are glued on to people and
situations, not the other way around.  So, he offers no defence of the grandiose
concept of synergy, although he makes it clear that ITT will never so far as he
is concerned buy a company just because it is good.  Acquisitions will have to
fit.

That is certainly a departure from Harold Geneen.So too is the vanished sense
that ITT managers are capable of running better than anyone any company that
happens to come their way.

Negatively, this is a loss of confidence.  Positively, it sounds more realistic
than the bravado displayed by some conglomerates in the early 1970s.

It means that Araskog's role, in spite of Wall Street's desire for the
spectacular, will for a while be chipping away at inventories, sorting out
reporting lines and paring off peripherals.

If Araskog gets the $3.3bn he is asking for Rayonier, the balance sheet problems
will be solved at a stroke.  Perhaps if he cannot sell it, he will sell Hartford
Insurance or Shearaton.

Araskog suggests another possibility: that he will simply plug along, improving
the debt-equity level gradually."I don't want to appear to be ambivalent on
this, but maybe I am," he confesses.

The danger of that approach, the classic weakness of the pragmatist, is the big,
bold opportunities slide by whilst the pragmatist has his nose in the fine
print.  But for the moment, no one can disagree with Araskog's basic creed: "we
are trying to do better with what we have."

Further articles on ITT will appear in the Management Page on Wednesday and
Friday.

LANGUAGE: ENGLISH

GRAPHIC: Picture 1, RAND V. ARASKOG, Brana Radovic; Graph, A FAR-FLUNG EMPIRE,
Figures in $ M 1980, Brana Radovic; Picture 2, HAROLD S. GENEEN, Brana Radovic

                   Copyright 1982 The Financial Times Limited


                             1938 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Ghana's lesson for Africa

SECTION: SECTION I; Editorial Comment; Pg. 10

LENGTH: 667 words


IT WILL be many days before the dust settles following the New Year's Eve
military coup in Ghana.  The return of Flight Lieutenant Jerry Rawlings to power
in place of the civilian administration of Dr Hilla Limann -- a government which
he helped to instal barely two years ago -- has yet to be consolidated.

Few other countries in Africa have been reduced to the parlous state of Ghana
today, with a currency changing hands at up to 20 times the official exchange
rate.  It is a far cry from the country which was Britain's first African colony
to achieve independence 25 years ago.  Yet it is a classic, if extreme, example
of the economic ills afflicting the whole continent.

Corruption

Against an international background of fluctuating commodity prices (with cocoa
providing more than 70 per cent of export earnings) and the world economic
recession, successive governments had sought to impose ill-thought out economic
policies with the most slender management resources.  The resulting economic
decline has put an intolerable strain on the country's political system.

Dr Limann inherited a combination of problems dating back to the first
post-independence government of Dr Kwame Nkrumah.  This included a swollen
bureaucracy, a consistent bias against agriculture, a physical infrastructure
crumbling through lack of maintenance, and endemic corruption.

For years the world's largest cocoa producer, Ghana has now slipped to third
place; last year's production of barley 250,000 tons was back to the level of
the 1950s, compared with more than 500,000 tons in the mid-1960s.  State
spending has concentrated on establishing import-substituting industries whose
competitiveness has been steadily eroded by domestic inflation, coupled with an
unrealistic exchange rate.

At the heart of Ghana's current problems lies the over-valuation of the
currency, the cedi.  Yet Dr Limann felt unable to devalue, in spite of the
urging of agencies like the International Monetary Fund, because of the
unpopularity of the move with the urban elite.  Each of the country's two
previous devaluations have been followed by coups.

Ironically, last week's coup against him did not wait for the devaluation.  Nor
had his economic reforms had a chance to take effect -- including the tripling
of the cocoa price to producers, and the freeing of market prices of all but a
handful of basic commodities.

The omens are not good for the Provisional National Defence Council of Flt Lieut
Rawlings to adopt more realistic measures.  When he was last in power, he forced
traders to sell their goods at reduced prices, which soon exhausted supplies,
and left the shelves bare when Dr Limann took over.

The inability of Dr Limann's government to sustain tough economic policies
contrasts poorly with the efforts of Dr Milton Obote to put right a similarly
disastrous economic decline in Uganda.  In that country, the formerly radical
socialist president has agreed to float his currency, in return for support from
the IMF and World Bank.  As a result, the Uganda shilling dropped from a rate of
eight to the dollar to 85.

Today, prices of some staple commodities in Uganda are lower than they were
before the currency was floated; horading has been discouraged and the black
market undermined.  Dr Obote has also gone out of his way to re-assure and bring
back foreign investors, chased away by his predecessor Idi Amin.

Devaluation

Flt Lieut Rawlings may win considerable popular support in his declared campaign
to root out corruption from Ghana's government -- although military regimes
before him have been no more successful than civilians in doing so.  But he must
use that popular support to take the tough measures the economy requires.

Opening up the market to international realities, with a substantial devaluation
as a prerequisite, is now needed.  Any attempt to keep to the path of narrow
economic nationalism has been shown to be doomed to failure.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1939 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Brinkmanship

SECTION: SECTION I; Men & Matters; Pg. 10

LENGTH: 257 words


In the secretive field of bullion trading, the tyre wear on the large armoured
trucks trundling their loads of gold around the City is probably the best clue
to the state of the London market.

John Patoux, managing director of Brink's-MAT, generally reckoned to be the
biggest security transport company, cautiously confirms my rubbernecking view
that London is gaining importance as a centre for physical trading in the
precious metal, largely at the expense of its arch-rival Zurich.

The shift to the City was behind the Swiss Government's move last week to remove
its gold sales tax on physical transactions involving central banks.

Patoux cannot elaborate on current business.  "Swiss bankers have a reputation
for being highly secretive.  I think we should be the same," he says.

The privately owned Anglo-American company publishes neither profits nor
turnover figures -- and is revealing only about jobs safely completed around 50
years or more ago.

Photographs behind Patroux's desk show a Brink's horse and cart transporting
valuables across the American mid-West in 1891; and Romanian gold being winched
aboard a ship in Dover harbour in 1934.

"Security on the whole was a lot less tight in those days," he says.

But Brink's-MAT has played a low-key role in more recent events which have made
headlines.  Last autumn it carried Britain's share of the £40m in gold ingots
salvaged from the sunken cruiser Edinburgh from the Scottish harbour where the
haul was landed to the Bank of England vaults.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1940 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Turn again

SECTION: SECTION I; Men & Matters; Pg. 10

LENGTH: 168 words


Turner and Newall may have been trimming its workforce on its way back into the
black, but one job which chairman Stephen Gibbs is hanging on to is his own.
Despite reaching the normal company retiring age of 62 this year, he is staying
on until 1985. His predecessors generally kept office until 65, he explained
yesterday, and he would have been surprised and disappointed had things worked
out any differently in his own case.

Any changes to the Gibbs style?  "Seven days a week instead of eight-and-a-half"
from now on, it seems.  Some responsibilities, particularly in research and
development, will devolve upon Wilfred Newton, 53, who also gets a change of
title from group managing director to chief executive.

The rise and rise of Ronald Somerville goes on apace, meanwhile.  Appointed an
executive director two years ago at the age of 50, he now becomes divisional
chairman for construction, engineering and industrial materials activities, and
group deputy managing director.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1941 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Meyers' nest

SECTION: SECTION I; Men & Matters; Pg. 10

LENGTH: 139 words


Political pretensions in West Germany -- and, cherish the thought, maybe
elsewhere -- have been rudely pricked by an opinion poll

The respected Emnid Institute, one of the country's best-known public opinion
and makret research organisations, included a fictitious "Minister Meyers" in a
list of prominent politicians put to voters

Returns showed the non-existent Minister had been voted sixth most popular --
ahead of such men with some claim to real political presence as Defence Minister
Hans Apel and Interior Minister Gerhart Baum.

Perhaps superfluously, an Emnid spokesman explained: "Contrary to the
assumptions of politicians, large sections of the population have a high degree
of ignorance about politics."

One in three West Germans, asked to name a Minister, was either unable to do so
or gave a wrong name.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1942 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Adder's tongue

SECTION: SECTION I; Men & Matters; Pg. 10

LENGTH: 360 words


Here is a vision to conjure with.  You walk into the office of your local
accountants, only to discover him in the following posture: he is "sagging
generally, chin on chest, chest collapsed, abdominal wall slack, knees bent.
Then, he slowly resumes an upright posture from feet upwards, weight forward on
balls of feet, legs straighten . . .  Finally, with a small movement, he brings
his head, by pulling on the vertebrae at the back of the neck, into a
well-poised position."

What is going on?  Obviously, he fell asleep over some boring old papers, and
then worke up again.  Right?  Wrong.Try another one.  You might find him "on
tiptoe, arms strethched upwards, fully extended, fists clenched, held for a
moment.  At a given moment, the gods strike and he relaxes.  Up-down, up-down,
etc."

Give up?  So would I, if I had not just finished reading "Effective speaking for
Accountants" by John Holgate, published by the Institute of Chartered
Accountants in England and Wales.  The first piece of odd behaviour which I
described is one of Holgate's recommended Relaxation Exercises; the second is a
Tension-Relaxation Exercise rather colourfully called "Cursing the unkind gods."

And if, in the midst of a bout of trial-balancing, your numbers man suddently
starts shouting "hah-hoo, hah-hoh, haw-haw, hah-hah, hah-hay, hah-hee, hah-hoo .
. ." there is no need to send for the men from the funny farm.  He is "opening
the throat and avoiding glottal shock."

There is not, as far as I can see, anything in Holgate's book which limits it
particularly to accountants -- though some of the exercises do involve counting
from one to 50 while twisting the chest muscles into unlikely configurations.
The suggested practice texts are drawn from Churchill, Galsworthy, and other
weighty authors.  Why not some prose closer to the accountant's heart?Such as:
--

"We have examined the accounts (deep breath, raise eyes) set out on papes 38 to
47 (pause).  These have been prepared (raise pitch) under the historical cost
convention (circular motion of right hand) as explained in the accounting
policies. . . ."

For the next edition, perhaps.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1943 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

The hard stuff

SECTION: SECTION I; Men & Matters; Pg. 10

LENGTH: 19 words


Overheard at a Lambeth bus stop: "My old man has boozers' rheumatism -- he gets
stiff in all sorts of joints."

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1944 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

A hint of realism in the docks

BYLINE: By Brian Groom, Labour Staff

SECTION: SECTION I; Britain's Ports; Pg. 11

LENGTH: 1735 words


MRS MARGARET THATCHER, searching for evidence of a "new sense of realism" among
workers, must feel encouraged by recent events in the unlikeliest parts of one
of Britain's most financially troubled industries -- the ports.

The Port of Liverpool -- notorious for its overmanning -- achieved an historic
productivity deal with its dockers in the autumn, albeit at the cost of six
one-day strikes and a one-week stoppage.

Mersey employers do not claim completely to have eliminated the "welt" -- going
home on full pay because of surplus manpower.  But 25 per cent cuts in manning
levels, and the ending of rotation of labour and guaranteed work in the Royal
Seaforth container terminal, represent attacks on it unthinkable in earlier
years.

Hull dockers have accepted a new shift system aimed at increasing productivity.
And London dockers rejected a call by their union leaders for an all-out strike
against the closure of the Royal Docks.

"There is an increase of realism in most ports -- and Liverpool is a fairly
tough test-bed," says Mr James Fitzpatrick, chief executive of the Mersey Docks
and Harbour Company and chairman of both the Liverpool and the national port
employers associations.  Even if the Liverpool agreement does not signal a
fundamental change of hearts and minds, the lower manning levels are there to
stay.

Moreover, employers have been cheered by the success of two special two-month
severance schemes -- one in Liverpool and London, in the spring, and a
subsequent one for all ports -- in reducing crippling surpluses of registered
dockers.  These had risen to an average 5,126 a day in the first quarter, or
over a fifth of the workforce.  Now, over 4,500 dockers have left in the last
year, and there has been much shedding of non-registered staff.

Against this background, some employers and port users are wondering if the time
is ripe to press for what they have desired for some time -- a revision of the
dockers' costly employment privileges.

The General Council of British Shipping for example has asked the Government for
an inquiry into the present regime.

A dialogue has begun between the National Association of Port Employers and
dockers' leaders on the future of the scheme.

It is here, however, that any euphoria ends.  Not only are the dockers as
determined as ever to resist any diminution of their privileges, but any
optimism among employers that may have been inspired by the events of recent
months has been undermined by three important factors.

First, while the historically militant Port of Liverpool has achieved crucial
changes in working practices, the once relatively peaceful Port of Southampton
has been devastated by 10 months of virtually continuous disputes.

After a four-month pay dispute with the port's dockers over a relativity claim,
the stateowned British Transport Docks Board tried to tackle the problem of
disparate earnings for different groups of workers by restructuring shift
systems -- and ran into a fresh dispute with 150 cargo checkers.  Cargo-handling
has been at one-third of capacity for most of the 10 months, and the port has
lost a calamitous amount of business.

Outside Southampton and Liverpool, there have been disputes in various ports
including even Felixstowe -- a leading growth port of recent years, which lies
outside the national dock labour scheme.  Man/days lost through disputes in
Britain's ports in 1981 totalled 3,781 per 1,000 men up to October 19, compared
with 4,769 for the whole of 1980.

Second, no employer believes the dockers are a spent force.  Containerisation,
other cargo handling changes, decasualisation and severances have reduced their
numbers to 18,000 now, compared with 80,000 in 1947 when the labour scheme
began.  Like that of other groups their mood is affected by the cold economic
climate.  But no one doubts their potential power if called on to defend the
scheme and the much-prized Jones-Aldington agreement.

Fifteen months ago the TGWU threatened a national dock strike and fought off a
challenge to the agreement by Liverpool employers, who had threatened not to
take on displaced workers when a stevedore closed.  No one has since been keen
to test the union's determination.

Third, recession has badly hit the employers' already shaky finances, Sir
Humphrey Browne, chairman of the British Transport Docks Board, Britain's
biggest port authority, said in announcing a 49 per cent drop in the Board's
annual pre-tax profits to £11.5m last May, that the country's other ports (owned
by a variety of public and private bodies) had lost about £40m in 1980.  Heavy
losses make the dockers' privileges seem still more of a burden.

Some pressure has been relieved by the success of the two-month national
severance scheme in the autumn, which raised maximum payments by £5,500 to
£16,000 and prompted 2,450 applications against a target of 2,750.

But this must be set against its cost.  It will amount to some £37m, borne
entirely by the employers, in addition to other severance payments last year.
This compares with £88m paid to registered dockers under the national voluntary
severance scheme in the first 11 years of its existence up to 1980.

Recession has caught the employers two ways: it intensifies the need for
severances while raising their prices as unemployment makes dockers more
reluctant to leave their jobs.

There is little chance that the current talks with dockers' leaders will bring
the ports much relief.  The dockers, far from recognising a need to reconsider
the national dock labour scheme, want it extended.

They are seeking the employers' agreement -- which has not been given -- to a
joint approach to the Government to persuade it to set up a half-mile "corridor"
around registered ports, in which dockers' employment conditions would be
enforced for port-related work.  The Government is required to lay a draft
scheme for this under the controversial 1976 Dockwork Regulation Act, but has
set no time limit.

Last May the TGWU threatened industrial action if its demand was not met in
three months.  Mr James Prior, the then Employment Secretary, said he could not
meet the deadline for a move which would provoke strong opposition from the cold
storage business and from employers in non-scheme ports.

The dockers want non-registered ports handling substantial cargo traffic to be
brought into the scheme.  The TGWU argues that many of them -- such as
Felixstowe -- have already benefited from the change in the pattern of trade
from the west to the east and south coasts, and that they should be deprived of
the additional cost advantage of not paying the NDLB levy.

The union took no action as the deadline passed.  But Mr John Connolly, its
national docks secretary, now says the TGWU may resurrect its threat

The employers are taking a cautious line about their talks with the TGWU.  They
do not want a confrontation and some see justification in the dockers' argument
that they have put up with heavy job losses in spite of their employment rights
and that the docks have been relatively peaceful since the 1972 strike.

Mr Malise Nicolson, vice president of the General Council of British Shipping,
says that ship owners would like to see all options examined in an inquiry,
including that of "buying out" the dockers' privileges.  This would be
horrendously expensive even if the dockers agreed but he believes it may be
worth considering when set against the high cost of surpluses and severances.

In the background lies the Government, which would have to decide on any inquiry
and would be responsible for any changes to the statutory part of dockers'
privileges.  The TGWU has already received a letter from Mr Norman Tebbit,
Employment Secretary, which it says rules out any hope of the

The Government, however, is reluctant to risk a confrontation with a group as
powerful as the dockers.

Its recent action in raising the limit for financial support to London and
Liverpool by £200m to £360m, but demanding that they break even by the end of
this year, underlines its ambivalent policy of stern warnings and grudgingly
continued aid.  At the back of its mind is the consideration that, not only
might it be more expensive to close a port than to keep it open, but it might
also provoke a national strike over compulsory redundancies.

For the employers, structural changes to their markets -- including
containerisation -- have almost certainly not yet fully worked themselves
through.  Some feel the workforce is now about right.  But Mr James Davidson,
director of the Clyde Port Authority, said in a speech last April that the
registered force may have to come down to 10,000 by 1984.

Without a more flexible agreement with the dockers on job protection, such a
further adjustment could prove still more painful and costly.

'A job for life'

Britain's 18,000 registered dock workers are virtually guaranteed a job for life
unless they take voluntary severance.  Their conditions are based on the
statutory national dock labour scheme, established in 1947 and amended in 1967.
This provides for registers to be controlled by local boards and the National
Dock Labour Board, with employers and workers equally represented.  The
industry's non-statutory Jones-Aldington agreement, which followed the national
strike of 1972, virtually rules out compulsory redundancy.  It stipulates that
if an employer closes, remaining employers in the port must take on its dockers.
                             BRITAIN'S MAJOR PORTS
                       1980 tonnage*    Dockers   Severances +  Pre-tax profit
                         (m tonnes)   (end-1980)     (1981)     (loss) 1980 £m
London                           14.5       5,793         1,168          (19.3)
Grimsby and Immingham             7.1       1,010           136            n/a
Tees and Hartlepool               6.8         923           141            2.0
Liverpool                         6.3       4,820         1,180          (6.25)
Dover                             5.3         n/a           n/a           1.07
Southampton                       4.1    ++ 1,798        ++ 276            n/a
Felixstowe                        4.0         n/a           n/a           0.09
Clyde                             3.7         571           187          (0.09)
Manchester                        3.5         897           386          (3.09)
Hull                              3.3     § 2,026         § 300            n/a
Harwich                           3.0         n/a           n/a            n/a
Bristol                           2.9     P 1,244         P 436          (10.8)
Forth                             2.1         644            84           1.36




* Customs figures excluding fuel and unclassified cargoes.

+ To December 4, 1981.

++ South Coast figures.

§ Including Goole.

P Including Severn.

Sources: National Dock Labour Board; British Ports Association

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1945 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

A lesson from the Irish

BYLINE: By Christopher Lorenz

SECTION: SECTION I; Lombard; Pg. 11

LENGTH: 669 words


AS NISSAN and the other Japanese industrial giants put into gear their plans to
build up manufacturing in Europe, the would-be host governments are falling over
themselves to clinch the investments with all sorts of inducements.

It was the same with the wave of expansion by U.S. multinationals into Europe in
the 1950s and 1960s.

All too often, such investments are less hard-won than the victor supposes: many
a multinational has been delighted to accept incentives to locate its nes
factory precisely where, because of marketing or production considerations, it
would have put it anyway.

But the main shortcoming of most European governments' attitudes to inward
investment is their obsession with quantity -- the headcount of promised new
jobs -- at the expense of any real concern with quality.

The host governments do their best to insist on ambitious export targets, and
pile on the pressure to use local suppliers, but they pay precious little
attention to the contribution the investment will make to the social
infrastructure of the particular town or region concerned.  Will it be
sufficiently vertocally integrated -- involving complete manufacturing,
marketing and even research and development -- to employ more than just assembly
workers and equipment testers?  Will it help stop the drift of engineers,
scientists (and even some skilled workers) to other regions and other countries?

In the midst of a recession, when any reduction in the dole queues is welcome,
no matter how menial the job involved, such questions may seem luxury.  Yet they
rank high in the priorities of many developing countries whose unemployment
problems are far worse than those in Europe, but whose governments are intent on
building a highly skilled human infrastructure as a foundation for industrial
growth.

Closer to home, the same sort of issues are being addressed by two unlikely
bedfellows: Britain's Department of Energy and the Irish Government.

The Energy Department is considering asking oil companies which bid for the next
round of North Sea oil exploration licences to commit themselves to having
research and development done by British supply and service companies.  The
objective of the proposal is to help these companies to operate at the forefront
of technology, and thus improve their export potential.

Ireland's Industrial Development Authority gives similar reasons for its recent
policy of encouraging foreign companies to adopt what it calls "a total
approach" to their investments -- taking in full-scale manufacturing, R & D and
substantial Irish-based marketing and Europe-wide administrative operations --
though in its case, the encouragement is as much for foreign companies to do
their own R & D as to subcontract it to local firms.

Well aware of Scotland's bitter experience in the 1970s of seeing one U.S.
multinational after another shut down its assembly plants, the Irish Government
appears to consider that integrated operations tend to have greater longevity.
But its motivation goes deeper: it wants at all costs to avoid being turned into
a latter-day offshore jobbing shop for the European market.

The IDA ceaselessly bangs home the message that its mission is to create jobs
for a growing workforce which is not only young but increasingly well-educated.
Putting money where its mouth is, last year it boosted its campaign to attract
service industries, particularly computer software companies.

To the extent that Ireland is competing with the UK, Belgium, France and many
other countries for the favours of the Japanese (as well as the newer
U.S.-electronics companies) it does not hold the whip hand enjoyed by Britain's
Energy Department, with its enviable control over the much more exclusive asset
of the North Sea.  So there is no way that Ireland could insist on R and D as a
condition of approving investment projects.But its priorities are commendably
clear and enlightened.  Its competitors would benefit from emulating them.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1946 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Act to capitalise on the benefits of recovery

BYLINE: Walter Goldsmith, Institute of Directors, 116, Pall Mall, SW1.

SECTION: SECTION I; Letters to the Editor; Pg. 11

LENGTH: 520 words


From the Director-General, Institute of Directors

Sir, -- The New Year brings a wider need to spread the benefits of recovery: for
a workers' charter to link all workers directly with the results of economic
upturn, to shift economic power back into the hands of the individual, and to
give to every worker a vested interest in the success of the free enterprise,
capitalist system.

Well-directed boards will be seeking to ensure that a fair share of the rewards
of the sacrifices that have been made in the past two years is transferred
directly into the pay packets of employees, and their spending power as
customers.

There is much legitimate concern with the need to keep pay in line with
productivity and profitability.  But the corollary of this is that employers
must give a clear undertaking not to hold down artificially the pay of those who
have delivered good results.  "Talking pay down" against a background of
successful performance can lead only to soured industrial relations and the loss
of skilled workers.

Employers should give a commitment to the introduction of voluntary but
effective formal machinery for communication to, and consultation with, the work
force.  The progress of draft EEC directives on worker participation will bring
this issue to the forefront of debate.

More radical measures are needed to encourage individual share ownership:
Government by encouraging simplification of share transfer formalities and stamp
duty for small share packages; companies by promoting wider use of bearer
shares, and employee share schemes going beyond shareholdings in one particular
company.  It would be a far healthier capitalist society if shares began to
change hands over the counter, or even in the pub.

Boards should recognise changing patterns of employment and economic activity.
Many employees today can see opportunities for economic activity outside their
main employment; there is a need to harness energies which might otherwise go
into moonlighting and tax avoidance into the real economy.  The alternative to a
society dominated by leisure is a society in which more people move into
job-creating self-employment and small businesses.  An enlightened employer will
look again at contract clauses that preclude employees engaging in any
spare-time work.  A restriction on competing activity may be more appropriate.

Labour mobility should be encouraged by further Rent Act reform and lowering
stamp duties to encourage home ownership.  Nationalised industries and public
corporations should be more accountable to their supposed owners -- if necessary
by giving to the people the shares in assets of nationalised industries which
resist conventional privatisation.

Perhaps, above all, we need to ensure that the coming Budget contains a 2p cut
in basic rate income-tax to boost incentives to marginal effort, spread economic
decision-making as widely as possible and provide tangible evidence of the
benefits of sound economic policies.  The year could set the seal on the type of
society, and government, we see for the rest of the decade.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1947 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

How to reward directors

BYLINE: Edgar Palamountain, 94 St Paul's Churchyard, EC4.

SECTION: SECTION I; Letters to the Editor; Pg. 11

LENGTH: 238 words


From the Chairman Wider Share Ownership Council

Sir, -- I write to reinforce, on behalf of an organistation which encourages
people to become shareholders, the points made in your editorial of December 30.

This coincided, of course, with Mr Beaumont-Dark's call for a statutory body to
review "golden handshakes." Such a proposal might seem to come oddly from a Tory
MP, presumed to be in favour of reducing the scope of government intervention
and control, but, as a stockbroker, Mr Beaumont-Dark is no doubt painfully aware
that it is unrealistic to leave the matter to private shareholders inadequatly
supported not merely by their institutional colleagues but, even more
discouragingly, by the non-executive directors whom they have appointed.

The inexorable growth of "fringe benefits," itself arising from misguided tax
policies, has created a patent conflict of interest between managements and
equity: the executive director has become the shareholders' worst enemy and his
non-executive colleagues almost invariably seem to lack either the power or the
will to reatrain him.

In calling for much stronger action on the part of institutional shareholders
you are absolutely right.  In particular they should insist that every major
company has at least two or three genuinely independent directors and that no
executive director is permitted to vote on any proposal designed to benefit
another.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1948 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Sympathetic to the plight of the Poles

BYLINE: Jonathan P. Stern, Flat 1, 157, Stapleton Hall Road, N4.

SECTION: SECTION I; Letters to the Editor; Pg. 11

LENGTH: 586 words


From Mr J. Stern

Sir, -- Anthony Robinson's article, "Solidarity: a test for the West" (December
29), contains many sentiments with which all of us who are sympathetic to the
plight of the Polish people would wish to be associated.  It also contains
misconceptions on the effect and nature of economic sanctions and on the
relationship between Soviet foreign policy decision-making and East-West trade.

Specifically, there is the suggestion that the Siberian gas pipeline is so
important to the Soviet economy and to Soviet foreign policy aims in Western
Europe, that the Kremlin has been prepared to delay action over the Polish
crisis.  This is to repeat the error of those who constantly reiterated that the
USSR was surprised by the force of Western response to the invasion of
Afghanistan -- suggesting that the Kremlin would have acted differently if it
had gauged Western views correctly.  It has to be understood that Soviet foreign
policy considerations, particularly in the Polish case, where events threaten
the concept of the leading role of the Communist Party and the viability of the
entire Warsaw Pact Alliance, are quite simply of a different order of magnitude
to those of East-West trade, even with a project as large as the gas pipeline.

This is not to say that the West should take no action; indeed, both the French
and West German governments have made it clear that an invasion of Poland would
preclude their participation in the gas pipeline project.  Yet what would be the
consequence of such actions?  In the long term (and governments will need to be
prepared to withhold their participation for years rather than months), it would
certainly have an adverse effect on the Soviet economy, but the idea that it
would bring the USSR very much nearer its economic knees than it already is,
should be carefully evaluated.

More importantly, what effect would this have on Soviet policy toward Poland?
Would the Kremlin be prepared to withdraw troops in hopes of restarting the
project -- almost certainly not.  There is the possibility of retaliatory action
with respect to the Polish debt situation; it should not be forgotten that in
terms of economic warfare, the Soviets also have powerful cards to play.
Moreover, it is not certain that sympathy for the Polish people would be
sufficient to overcome the outcry over the loss of employment in the Ruhr,
Clydeside and other depressed areas in Western Europe, which would result from
the cancellation of the pipeline.

Once again, this does not mean that sanctions should be ruled out, it argues
that the uses and consequences of such measures should be correctly understood.
As the U.S. realised in the course of the grain embargo, sanctions have high
costs for those imposing them and their punitive effects are not predictable
(particularly when other suppliers of the same commodity refuse to take a
comparable stand).  The U.S. grain embargo was not necessarily wrongly
conceived, it was wrongly presented to the public as a lever with which the
Soviets could be forced into changing their policies.  Rather, the embargo and
other sanctions are symbolic gestures which inform the Kremlin (and the world in
general) that Western countries do not conduct business as usual with those
whose foreign policy acts they find reprehensible.  But that is all.  Sanctions
will not halt a Soviet invasion of Poland and they will not force the Soviets to
leave if they do invade; sanctions do not help the Polish people.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1949 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Transport and the Law Lords

BYLINE: A. H. W. Purkiss, 40, Holborn Viaduct, EC1.

SECTION: SECTION I; Letters to the Editor; Pg. 11

LENGTH: 106 words


From Mr A. Purkiss

Sir, -- The article by Justinian (December 21) highlights what appears to be a
major fault in our judicial system.

The inability of our legal experts to draft laws which can be understood by our
Parliamentarians and, remembering our Law Lords' reluctance to read Hansard, to
establish the intent of any Act must be accepted.  But surely there is a simple
solution.

Let Parliament preface any Act with a simple statement of intent in plain
English (such as Mr Richard Marsh's statement quoted).  Thus the courts will be
forced to take the intent of Parliament into account in their deliberations.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1950 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Jakarta reduces subsidies on fuel

BYLINE: By Richard Cowper in Jakarta

SECTION: SECTION I; Pg. 12

LENGTH: 494 words


INDONESIA has increased the domestic price of its heavily subsidised fuel
products by more than 60 per cent - the first rise in domestic fuel prices since
May 1980.

The move is seen as a means of boosting government revenue to enable an increase
in expenditure on development and a reduction in government outlay on subsidies.

The price increase, which was announced by Professor Subroto, Minister for Mines
and Energy, just two days before President Suharto was due to present his draft
budget for the coming year, is expected to save the Government more than $1.5bn
in the 1982-83 financial year.

The saving should enable the Government to increase the level of spending on
major development programmes already under way in education, agriculture and
infrastructure at a time when its income seems set to remain flat because of
falling demand for Indonesia's commodity exports and stagnant oil prices.
Indonesia is Asia's largest Exporter of oil and natural gas, and petroleum
revenue accounts for over 70 per cent of government income.

The decision by President Suharto to increase local fuel prices four months in
advance of May's general election came as a surprise to many, with some
observers describing it as a bold move and others saying it was foolhardy.  Last
year, the President said the Government had no intention of announcing any such
increase during the 1981-82 financial year, and many of his political advisors
are understood to have argued against the move until the last minute because
they believed it would give the Opposition a perfect stick with which to beat
the Government in the run-up to the election.

Kerosene, which accounts for by far the largest part of the subsidy on domestic
oil products, is, with rice, regarded as the most politically sensitive of
commodities because it is used by a majority of the nation's 155m people as
their chief source for cooking and light.

That the president decided to go against popular opinion and accept the
recommendations of the technocrats - who have for long been arguing that soaring
fuel subsidies were becoming a drain on the budget and encouraging the wasteful
use of a precious resource - is a measure of his self-confidence.  At a time
when he is calling on the country to elect him for a fourth term as President,
General Suharto judged that his position was strong enough to survive a
politically unpopular measure.

Even with the increase, domestic fuel products in Indonesia are still heavily
subsidised.  Kerosene is now being sold at around a third of the international
price, while most other products, with the notable exception of petrol, are
available at around half of the market rate.

Providing there is no steep increase in the international price of oil during
1982-83, Indonesia will still be subsidising the domestic market by some $1.5bn
- a figure, however, only half of what it would have been had the Government not
raised the price.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1951 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Breathing space likely in Atlantic air fares row

BYLINE: BY MICHAEL DONNE, AEROSPACE CORRESPONDENT, IN LONDON

SECTION: SECTION I; Pg. 12

LENGTH: 492 words


THE U.S. GOVERNMENT is expected to announce soon that it will further defer any
action to remove anti-trust immunity from foreign airlines, to allow more time
for a solution of current North Atlantic air fare problems to be reached.

The Civil Aeronautics Board (CAB), the governing body of U.S. civil aviation,
has been threatening for some time to remove the existing anti-trust immunity
enjoyed by airlines who are members of the International Air Transport
Association (IATA).

This threat was to be implemented on January 15, having been deferred from
September 15 last year.  This followed pressure on the CAB from President
Reagan, after more than 40 foreign governments and over 60 other international
aviation bodies had protested vigorously against the U.S. plan.

The anticipated further deferral of anti-trust action against the airlines
follows President Reagan's decision last week to support legislation that would
free international shipping lines from U.S. anti-trust curbs, and allow them to
agree rates between themselves without fear of prosecution.

There have been moves on both sides of the Atlantic to get another international
airline conference under way to try to settle the difficult problem of North
Atlantic air fares.

Collectively, airlines flying the North Atlantic are losing some $650m a year.
It is feared that unless fares are soon raised substantially, this figure will
be greater in 1982.

Iata, which has 113 member airlines and is the basic target of the CAB's
hostility, is planning a fares meeting in Geneva on January 13.

The European governments had protested to the U.S. that with the threat of
anti-trust action hanging over the airlines, no such conference could be
successful.  Simply by taking place on January 13, it would be contravening U.S.
anti-trust laws once the existing immunity was removed on January 15.

There is also the question of whether the U.S. will permit any airlines which
are not members of the Iata (including some U.S. airlines) to attend the Geneva
meeting.  Their participation is considered vital for a successful conclusion of
a new agreement on fares.  To allow non-Iata airlines to charge whatever fares
they choose would be disastrous to any new fares agreement.

Yet another concern is whether the CAB will be prepared to accept any decisions
on fares-fixing that might emerge from the Geneva meeting.

The U.S. itself has suggested that one way out of the North Atlantic fares
problem would be to introduce "zones of reasonableness" in which airlines would
be free to raise or lower fares according to market conditions, without recourse
to governments.

The Europeans have been somewhat sceptical, arguing that if the U.S. is really
anxious to see an end to current troubles on the North Atlantic, it could
demonstrate its goodwill by removing the threat to the Iata airlines' current
anti-trust immunity, as it now seems about to do.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1952 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

French expect to cut trade deficit

BYLINE: By Terry Dodsworth in Paris

SECTION: SECTION I; Pg. 12

LENGTH: 295 words


FRANCE is likely to be able to declare a slight reduction in its foreign trade
deficit for 1981 compared with the record FFr 62bn ($10.9bn) shortfall run up in
the previous year.

The latest forecasts indicate a deficit last year in the region of FFr 58bn
after a rise in exports of 17.6 per cent. Imports increased more slowly by only
14.4 per cent in value

According to a report from the Banque Francaise du Commerce Exterieur, one of
the main problems faced by France last year was the appreciation of the dollar,
which led to a much more rapid increase in the price of imports compared with
earnings from exports.

This difficulty was particularly damaging in terms of France's oil imports,
whose Franc-denominated price increased by 48 per cent in the first nine months
of the year, when the French currency lost ground heavily against the dollar.

The report says that this trend was also accentuated by the method of billing
about a third of imports in dollars against only 13 per cent of exports.

France was also hit last year, as in 1980, by a decline in its exports to West
Germany caused by the over-valuation of the franc against the D-Mark.  Last
autumn's currency reorganisation within the European Monetary System, which led
to an effective 8.5 per cent devaluation of the franc against the D-Mark, has
helped exporters to re-establish themselves in the West German markets, although
some believe that more should have been done.

The 1981 record shows, in addition, that France has still not overcome the
weakness of its exports to big industrialised countries.  What improvement there
was last year derived from stepping up sales to the underdeveloped world, where
contracts often have to be heavily supported by subsidised loans.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1953 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Questioning the Howden bid

SECTION: SECTION I; The Lex Column; Pg. 12

LENGTH: 308 words


The terms of Alexander and Alexander's agreed offer for Alexander Howden always
seemed unexciting.  Now they look downright unattractive.  Institutional share
and warrant holders have only a few days left in which to decide whether to do
anything about it.

A and A, the second largest insurance broker in the U.S., is offering equity and
convertible.  Since the terms were agreed in September, the dollar has weakened
and its own share price has fallen sharply.  As a result, the bid is now worth
only about 140p per share - 15 per cent less than in September - which puts
Howden on an exit p/e of under 9 on the basis of likely 1981 earnings.  The
insurance broking sector is on a comparable p/e of about 10 1/2, and Howden's
shares have performed noticeably worse than the sector since the day before the
bid was announced - which may be some kind of record.

Part of the weakness is technical.  A and A shares are about to shift from the
over-the-counter market to New York's Big Board.  Market makers are protecting
their positions ahead of a big increase in the outstanding equity, and taking
the view that not all Howden's shareholders will want to hold dollar securities.
The arbitrageurs have been at work, too: which probably explains why Merrill
Lynch popped up with a 5 per cent holding in Howden the other day.  U.S.
investors have decided that this is a cheap way into A and A.

Howden argues that the long term future of insurance broking lies with the big
battalions, and its shareholders will be unwilling to go against their board in
what is essentially a people business.  The odds are against any concerted
opposition.  Still, there are rumours of institutional unease, and brokers L.
Messel are rallying warrant holders against the terms.  Friday's special meeting
of Howden might provide a forum for debate.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1954 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Funding

SECTION: SECTION I; The Lex Column; Pg. 12

LENGTH: 457 words


Around this time three years ago, gilt-edged brokers were making New Year
resolutions to shop around for prestigious new jobs as soon as they had made a
fortune in the ultimate bull market in bonds.  New issues of Government debt
were simply going to wither away as the public sector's finances came into
balance.  Schemes for repaying the National Debt with North Sea revenues were
rife, and the August function of Government Broker risked being reduced to the
decorative level of Poet Laureate or Black Rod.

Instead, things have gone on much as before: the non-bank private sector
increased its holdings of gilt-edged stock by some £9bn last year, rather more
than in 1980.  And if more subtle official tactics - combined with net selling
by overseas and banking sector holders - made the funding process rather less
obtrusive in 1981, yields moved upwards for most of the year.  How much stock
the Government has to sell this year depends of coourse on the next few months'
fiscal and monetary policy decisions, but at present in seems unlikely that the
gilt-edged funding requirement will be much lower than last year.

However little emphasis is given to monetary policy in the Budget on the
strength of the Chancellor's December statement, the medium-term strategy has
been embalmed, if not buried - it would be surprising if the authorities were to
aim for sterling M3 growth of more than 10 per cent, roughly £8bn.  On the
generous assumptions that the public sector borrowing requirement for next year
works out near £10bn while bank lending to the private sector is somewhat below
last year's £10bn, inflation notwithstanding, a good £10bn of net funding will
need to be done in addition to the refinancing of £4 1/2bn of gilt-edged
maturities.

National Savings can probably not be relied upon to contribute much more than
half the £4bn raised last year, when this medium of funding was rediscovered
after a decade of neglect.  The ever more generous inducements offered to the
saver to lend money to the Government already seem to be producing diminishing
returns.

Selling £8bn or £9bn of new marketable debt should not be too awesome a task,
considering that the institutions seem to be nearing their target levels for
overseas investment and may commit a larger proportion of cash flow to the
domestic markets.  But fund managers still do not seem at all keen to see a
higher fixed-interest component in their portfolios.

For the next couple of months, liquidity management rather than money supply
control is likely to preoccupy the authorities.  But if the gilt-edged market
continues to show the signs of life discernible last week it may well be
rewarded with a partly-paid tap stock or two.

LANGUAGE: ENGLISH

GRAPHIC: Graph, no caption

                   Copyright 1982 The Financial Times Limited


                             1955 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Milk

SECTION: SECTION I; The Lex Column; Pg. 12

LENGTH: 269 words


After the free-for-all of the last two years, the new milk costings system comes
as a relief for the distributors.  In effect the Government has accepted the
essential elements of the old system, whereby wholesale and retail prices are
set, with the bulk of the space in between filled by average industry costs. So
the liquid milk distributors will once again be able to rely on steady cash
flows and a substantial measure of protection against inflation.  It is
estimated that the industry would have received about £40m more in the last two
years if the old system had been in operation; this year returns should not fall
far short of what they would have been under the old regime.

There are a series of changes in the actual operation of the system - which at
least provides some justification for commissioning three weighty tomes from
accountants Binder Hamlyn.  The most important of these is the way the profit
margin is calculated.

Whereas previously this was set at a fairly arbitrary - and generous - level,
now it is to be computed from the rates of return on capital employed prevailing
in the food manufacturing industry and trading margins in food retailers.  If
milk volumes go on falling, this guaranteed return on possibly under-utilised
assets will prove generous.

But the bulk of the profits for the quoted companies - most notably Unigate and
Northern Foods - will continue to derive from the extent to which their costs
are lower than the average.  On this front the make-up of the various samples
used in computing average costs will prove as critical a factor as any.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1956 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

British rival blames Laker for many problems facing airlines

BYLINE: BY OUR AEROSPACE CORRESPONDENT IN LONDON

SECTION: SECTION I; Pg. 12

LENGTH: 242 words


ONE OF the British competitors of the independent airline, Laker Airways, has
accused it of being "the catalyst for many of the problems" of the air transport
industry as a whole, especially in its policy of pressing for cheap fares on the
North Atlantic and in Western Europe.

Mr Adam Thomson, chairman of British Caledonian, told his company's staff in a
New Year message that the Laker activities "have contributed, in large measure,
to the critical state of the industry today, through the desire of other
airlines to match Laker Airways fares."

In Mr Thomson's view, when Laker took on the role of "price leader" on the North
Atlantic, "it started a fatal move in pursuit of market share and traffic volume
towards fares which it has been shown are no longer economic in all the
circumstances."

Mr Thomson points out that low fares were available on charter flights on the
North Atlantic for at least 15 years before Laker started Skytrain.

It was charter services which created the "explosive growth" on the North
Atlantic, and Mr Thomson says his competitor, Laker Airways, "merely took over
the carriage of the charter market in the form of scheduled services."

He also criticised what he called the "much-heralded Laker Airways proposal" to
apply for 666 new routes in Europe

British Caledonian believes "the application was unrealistic and not a venture
which should have justified the acquisition of a fleet of Airbuses"

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1957 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

10,000 Ford UK workers to defy union and strike today

BYLINE: BY IVO DAWNAY, LABOUR STAFF, IN LONDON

SECTION: SECTION I; Pg. 12

LENGTH: 442 words


THE THOUSAND body and assembly plant workers at Ford UK's Halewood plant near
Liverpool are to go ahead with a strike today in defiance of instructions from
union negotiators to continue normal working.

Stop stewards at Halewood said that an earlier vote makes the action mandatory
until new mass meetings can be called to revoke the decision.

Union officials representing Ford's 54,000 manual workers agreed yesterday to
call for a postponement of the strike and fresh mass meetings following an
improved pay offer at the weekend.

The 56-strong negotiating body, representing 13 Ford unions, is recommending
acceptance of the new offer

Normal working is expected to continue uninterrupted at the company's remaining
23 plants as well as the transmission plant at Halewood while shop stewards
arrange for new votes to take place.

Voting is expected to begin at Dagenham, east of London, today with other plants
following suit later in the week.  about 160 shop stewards from the Halewood
body and assembly plants are expected to meet in Liverpool today.

The plant, which has a tradition of militancy, usually organises mass meetings
of weekends, although it remained unclear last night as to how long the strike
would continue.  In 1968, Halewood workers, in defiance of senior union
officials, continued industrial action, eventually forcing the company to
withdraw penalty clauses linked to a new efficiency scheme.

The unions' decision to recommend Ford's latest offer is almost certain to win
the agreement of the workforce.  Mr Ron Todd, chief negotiator for the union
side, said yesterday: "There has been sufficient improvement for the lads to say
it is a reasonable deal.  We believe we have got as much as we can from the
company."

The new package - which the unions estimate to be worth 20 per cent - will lift
weekly wages and supplements for the company's mid-grades by between £7.50 and
£8.04, taking average earnings to between £128.44 and £134.33.

The company had originally offered 4.5 per cent on wages combined with
acceptance of a rigorous five-point efficiency programme.  The unions countered
with demands for a £20-a-week increase in pay, the introduction of a 39-hour
working week

An improved management offer of 7.4 per cent together with an agreement to drop
the threat of financial penalties for plants that failed to meet efficiency
targets was also rejected by the unions.

But Ford's decision at the weekend to bring forward the 39-hour week from
November to June 1 and to introduce pensions in line with clerical workers by
August, finally bridged the gap between the two sides.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1958 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Surinam nationalisation blow to Ogem sell-off

BYLINE: BY CHARLES BATCHELOR IN AMSTERDAM

SECTION: SECTION II; Companies and Markets; Pg. 13

LENGTH: 290 words


OGEM, the loss-making Dutch conglomerate, has run into further problems in its
attempt to sell off a number of non-essential operations.  The government of the
former Dutch colony of Surinam has nationalised the company's 40 per cent stake
in the electricity and gas utility Energie Bedrijven Suriname (EBS).

The Surinames Government, which came to power in a coup in 1980, has indicated
it will pay compensation, Ogem said.  This will be less than the Fl 30m ($12m)
value which Ogem puts on EBS, however.

The company and Surinam agreed in 1971 that Ogem should transfer its remaining
interest in EBS to the Government but have been unable to decide on a price.
The difference between the two estimates during the most recent round of
negotiations was still several million Surinamese guilders, according to Ogem.
One Surinamese guilder is currently worth Fl 1.40.

Ogem said it expected a valuation would be decided upon by an arbitration
committee consisting of a representative of the Surinamese Government, an Ogem
representative and an independent third member.

The company's efforts to divest itself of a number of activities in order to
improve its financial position have not been as successful as it hoped.  The
depressed world economy and high rates of interest have discouraged potential
buyers for its operating companies and property.  However it announced last
month that talks had reached an advanced stage over the sale of a large part of
its trading activities.

It hopes to sell assets worth at least Fl 400m.  It sold Fl 133m worth in 1980
but "considerably less" than the target of a further Fl 150m it set itself for
last year.  Ogem made a net loss of Fl 118.5m in 1980 on sales of Fl 3.94bn.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1959 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Success that impresses investors

BYLINE: BY CHARLES BATCHELOR IN AMSTERDAM

SECTION: SECTION II; Companies and Markets; Pg. 13

LENGTH: 839 words

HIGHLIGHT: BALLAST-NEDAM'S $564m MIDDLE EAST DEAL


BALLAST-NEDAM' the Dutch construction group which last year won a $564m contract
to build a 15.6 mile causeway linking Bahrain with Saudi Arabia, is no stranger
to the Middle East.

It started in 1963, providing a Fl 12m ($5m) sewerage system in the kingdom's
backward eastern province.  "We did the work for the Aramco oil company which
wanted to make a gesture of good will to the Saudi Government," said Mr Philip
Diderich, Ballast's chairman.

"The trouble was the local people had already installed their own private
connections.  We came across a maze of pipes underground.  We made a large loss
on that contract."

Ballast's tendering department had carefully calculated the risks attached to
the causeway, a chain of five bridges with four traffic lanes.  But foreign
contracting remains a risky business.  Two large Dutch companies -
Rijn-Schelde-Verolme and Volker-Stevin - have run into major problems on foreign
contracts in the past few years.  Ballast itself plunged into the red in the
early 1970s because of miscalculations in South Africa.

Ballast's problems led to a fundamental reorganisation of its management
structure.  The system of a collegiate board without a permanent chairman was
srapped.  Mr Diderich was appointed chairman and the other board members were
each given clear responsibility for an operating division.

The company aims to reduce the gap between senior managers and junior
executives.  It wants to guard against a distant management imposing unrealistic
goals on the divisions.  "With us large, and sometimes risky, contracts are
decided on at a low level," says Diderich.

Ballast's success has clearly impressed investors in the Middle East.  In
November, Minefa holdings, an Amsterdam-based investment group, took a majority
stake in the company.  Minefa increased its share to 70 per cent from the 33 per
cent, when another large shareholder, the Heerema engineering group, decided to
pull out.

Minefa and the associated Wedge International investment group, are owned by Mr
Issam Fares, a Lebanese businessman with houses in Athens and Riyadh.  The two
companies manage the considerable personal fortune of the 48-year-old Mr Fares,
a Minefa official says.

Minefa and Wedge have other large holdings in industrial and service companies
in Europe and the U.S. Minefa currently has one appointee, a Dutch tax
specialist, on Ballast's six-man supervisory board.  Minefa sees its holding in
Ballast simply as an investment and professes no intention of interfering in the
running of the company, Diderich says.

While Ballast undoubtedly benefits from its long involvement in the Middle East
- "We were there long before the oil boom," Mr Diderich said - it tenders on the
same basis as other contractors.  More than 80 international consortia and
companies expressed an interest in the Bahrain causeway contract and 24 went as
far as to submit bids.

Ballast submitted its tender in June 1980 and was called, with seven other
contenders, to discuss the project in January 1981.  In june Ballast's
negotiating team went to the Middle East for a second round of talks lasting
five weeks.  After intensive discussions of the price, the design and the
specifications the contract was signed on July 9.

Eighty per cent of Ballast's business is carried out abroad (compared with 66
per cent five years ago) and of that 70 per cent is in Saudi Arabia.  The
company had barely completed the largest Middle East contract ever won by a
Dutch construction company, a Fl 4.7bn order to build a number of complete
townships, when, a few days before the signing of the causeway deal, a follow up
order worth Fl 1bn was signed.

Ballast is concerned that it has become so dependent on one country for much of
its work and it is attempting tempting to spread its net wider.  But with
competition in the developed world impossibly tough and the non-oil developing
countries too poor to afford the projects in which the Dutch company is
specialised, it remains heavily dependent on the oil exporting countries.

Mr Diderich lists Indonesia, Malaysia, the Middle East and the Caribbean as
areas with potential.  Ballast has just formed a consortium with three other
Dutch companies to investigate prospects for a major new deep-sea port in
Indonesia.

Ballast-Nedam has come a long way since Ballast, which had some limited
experience of working abroad, and Nedam, which operated purely in the
Netherlands, merged in 1964.

Ballast has begun putting together a project team to carry out the causeway
contract.  "We do not have a team ready to send in," Mr Diderich said.  "We must
get the different people we need.  This is not easy.  If you forbid the
'poaching' of qualified people then the organisation does not come to life.  If
you encourage it you get a 'wild west' situation.

"You cannot stop people phoning up friends in the company and asking them if
they want to take part.  At the moment we have 'controlled chaos.' This will
last for a few months."

LANGUAGE: ENGLISH

GRAPHIC: Illustration, An artist's impression of the causeway that will link
Saudi Arabia and Bahrain.

                   Copyright 1982 The Financial Times Limited


                             1960 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Amex to buy U.S. broker for $76m

BYLINE: By Our New York Staff

SECTION: SECTION II; Companies and Markets; Pg. 13

LENGTH: 141 words


SHEARSON-AMERICAN Express, the stockbroking subsidiary of American-Express, is
to buy Foster and Marshall, one of the largest stockbroking firms in the U.S.
North-West for about $76m.

The acquisition, which extends American Express's fast growing involvement in
the securities business, will be financed by a mixture of cash and common stock.

American Express bought Shearson, one of Wall Street's largest stockbrokers,
last year for about $1bn and is in the process of building up ties between its
securities and financial service operations.

American Express drew 49 per cent of last year's earnings total of $376m from
insurance activities and a further 10 per cent from international banking.  The
acquisition of Foster and Marshall will strengthen the contribution to American
Express of the Shearson Rhoades operations.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1961 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Swedes hint at forestry merger

BYLINE: BY WILLIAM DULLFORCE IN STOCKHOLM

SECTION: SECTION II; Companies and Markets; Pg. 13

LENGTH: 271 words


THE SWEDISH Industry Minister, Mr Nils Aasling, has revived a suggestion that
the three state-owned forest companies, Assi, NCB and Domanverket, be brought
under one umbrella organisation.

Such a move would create a group with annual sales of about SKr 9bn ($1.62bn),
considerably larger than the privately owned Svenska Cellulosa, which is
currently Sweden's and Europe's largest forest product concern.

The idea of a merger has been mooted previously but has been opposed by
politicians, local interests and by Domanverket, which manages the state
forests.  But Mr Aasling has now asked Mr Lennart Schotte, managing director of
Domanverket, to prepare a "co-ordination" of the three state concerns.

The co-ordination need not entail an outright merger, according to Mr Aasling,
who envisages the formation of a holding company or some other kind of umbrella
organisation.

Behind the revived proposal are the ailing fortunes of both Assi, a pulp, paper
and board company, and NCB, a pulp and paper concern formerly controlled by
forest owner co-operatives in which the state had to take a 75 per cent
interest.

Assi warned unexpectedly in its eight-month interim report that it faced a
pre-tax loss of SKr 540m on sales of SKr 3.8bn this year.  NCB lost some SKr
120m pre-tax in an 18-month period in 1979/80 on sales of SKr 2.5bn.

This year NCB has shed several loss-making units is a sharp restructuring
exercise but is still expected to show a loss.

A major problem for the two manufacturing concerns is that, unlike most of the
private forest product companies, they do not own forests.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1962 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

American Can in assets sale

BYLINE: By Our Financial Staff

SECTION: SECTION II; Companies and Markets; Pg. 13

LENGTH: 137 words


JAMES RIVER Corporation of Virginia, the world's largest producer of speciality
papers, has tentatively agreed to acquire certain domestic paper businesses for
cash and stock totalling some $420m from American Can, the Greenwich,
Connecticut, leading manufacturer of metal containers.

The proposed deal, a major step in American Can's asset redeployment programme,
announced last spring, includes the group's domestic Dixie towel and tissues,
and folding carton businesses. The assets to be purchased by James River,
including a bleached kraft pulp and paper mill at Nahedla, Alabama, had a net
book value of about $335m on September 30, 1981.

Mr William S. Woodside, American Can's chairman and chief executive, said the
anticipated gain from the sale would be reduced by costs related to the
transactions.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1963 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Dutch bank cuts forecast

BYLINE: By Our Foreign Staff

SECTION: SECTION II; Companies and Markets; Pg. 13

LENGTH: 60 words


NEDERLANDSCHE MIDDEN-STANDSBANK (NMB) expects profits for 1981 to be lower than
it previously forecast.  The bank earlier said its result would not be much
different from the Fl 183m ($74m) in 1980.

This is the result of a narrowing of the bank's interest rate margin in the
final quarter and the need to make additional provisions for general risks.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1964 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

French doll producer in FFr 10m aid plan

BYLINE: BY TERRY DODSWORTH IN PARIS

SECTION: SECTION II; Companies and Markets; Pg. 13

LENGTH: 109 words


THE FRENCH Treasury has intervened to organise a temporary rescue for Poupees
Bella, one of the country's leading doll producers, after its decision to go
into receivership during the Christmas period.

Loans worth about FFr 10m ($1.75m) are being put up through CIASI, the
interministerial committee which is responsible for arranging urgent financial
help for companies in difficulty.

These funds are aimed at keeping the company afloat during January and February
when toy companies take the most important orders for the year.  Production at
Bella, based in the Roussillon region of southern France, is expected to restart
next week.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1965 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Concentrating on being Number One

BYLINE: BY JOHN WICKS IN ZURICH

SECTION: SECTION II; Companies and Markets; International Companies and Finance;
Pg. 14

LENGTH: 684 words

HIGHLIGHT: UNION CARBIDE STICKS TO $14bn SALES FORECAST FOR 1983


LAST YEAR turned out to be a disappointing one for Union Carbide.  First-half
earnings of the New York-based diversified industrial group showed virtually no
advance over comparable 1980 figures, while the second half was scarcely more
encouraging with nine-month profits down at $509m.  "We should do well to hold
our own," Mr Warren M. Anderson, the company's new chairman, said on a recent
visit to Europe.

Predictions for 1981 were overturned by the unexpected development of the
market.  Union Carbide had anticipated a slow start to the year, followed by a
gathering of momentum in the third quarter and a "fantastic" fourth quarter.
The reverse happen led.  The first quarter was good, second-quarter business
started to slip and the summer turned out bad.

It remains to be seen how great an impact currency fluctuations will have on
earnings, but the company expects a negative effect on its results.

Despite what appears to have been a flat year for its profits, Union Carbide is
cheery about longer-term prospects.  In 1979 it had set five-year goals with
targets for 1983 of $14bn in sales and $940m in earnings.  By comparison, 1980's
sales were almost exactly $10bn and net income - after deduction of $217m
arising from a change of accounting practice - was $673m.  Mr Anderson says he
sees no reason not to reach these objectives.

Mr Anderson claims that the group is in much better shape since the recent
completion of a largescale divestment programme.  Begun in 1977, this involved
the shedding of assets worth some $1bn - and, coincidentally, annual sales of
the same amount - which had provided a combined return of less than 1 per cent
on assets employed.  The divestments were carried out without any penalty to
company earnings per share, so the proceeds were a substantial contribution to
investment in what are now six core product groups.

Apart from the sale of Union Carbide's activities in such fields as health care
and ferro-alloys, the most publicised divestment in Europe was the disposal of
chemical operations in the UK and Belgium.  The $300m sale to BP Chemicals
involved low-density polyethylene, ethylene oxide and glycol operations.  The
U.S. company wanted to quit a sector where it was totally dependent on its raw
material suppliers and threatened with international over-production, while BP
was keen on forward integration.  Union Carbide's policy is to concentrate on
sectors where, as Mr Anderson says, "We're Number One or know how to get there."

In its biggest single division - chemicals and plastic - the company is
particularly happy about its energy and capital-saving Unipol process for the
manufacture of lowdensity polyethylene.  Itself the world's biggest polyethylene
producer, Union Carbide is licensing the process worldwide as well as adding to
its own capacities.  By 1985, more than 22 per cent of total world polyethylene
output is expected to come via the Unipol method.

The company is probably best known as the world's leading battery manufacturer.
Although a substantial part of its business is in traditional battery production
in the Third World, this sector has received a considerable impulse from the
recent rush into miniaturisation.  An important move here has been the setting
up of Sony-Eveready, a Japanese joint venture with Sony.

The group's Linde division leads the U.S. industrial gas market.  Outside the
traditional steel sector, business is growing fast in nitrogen supplies for oil
well injection, while the company is pleased with the prospects for its Anderson
Burner for the controlled-heat burning of oxygen.

It also has high hopes for its carbon-fibres' activities, which it is now
expanding by the construction of a $1.9m unit in South Carolina.

Union Carbide is keeping up the annual capital expenditure of some $1.2bn
foreseen in the five-year plan.  By 1983, in fact, yearly investments could
account for $1.3-1.4bn, according to Mr Robert W. Wesson, assistant treasurer.

Despite the recent sale to BP, Union Carbide says it has no intention of
neglecting Europe.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1966 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

New York weakness puts paid to promising start for 1982

BYLINE: BY PETER MONTAGNON, EUROMARKETS CORRESPONDENT, IN LONDON

SECTION: SECTION II; Companies and Markets; International Companies and Finance;
International Capital Markets; Pg. 14

LENGTH: 282 words


PRICES in all major sectors of the international bond markets moved ahead on the
first day's trading of 1982 but some of the impetus was lost in the afternoon
after a weaker than expected tone in the New York bond market.

This left dollar Eurobonds up an average of only 1/2 points on the day with
dealers describing the closing tone as mixed in only moderate trading volume.

New issue activity has resumed, however, after the Christmas/New Year break,
with Mitsubishi Chemical kicking off the New Year with a $50m, five-year issue
with warrants to purchase stock in the company.

Final terms will be fixed next week, but, yesterday, lead managers Morgan
Stanley and Yamaichi International were indicating a coupon of 11 to 11 1/2 per
cent and a premium on the warrants to purchase stock of 2 1/2 per cent.

Also in the dollar sector, Orient Finance, the Japanese credit company, is
floating a $60m, 15-year convertible issue through Nomura Europe.  The bonds
have an indicated coupon of about 5 1/4 per cent and final terms will be set
next week.

In the Swiss Franc sector, the Austrian power company Osterreichische
Donaukraftwerke is to float a SwFr 100m issue through Swiss Bank Corporation
with an indicated yield just below 7 per cent.  Banque Francaise du Commerce
Exterieur is to launch a Fl 100m, 12-year, 12 1/4 per cent issue through Amro
Bank.

Prices of D-Mark foreign bonds firmed by 1/4 points in sympathy with the trend
in the domestic market, which was boosted by reflows of interest payments from
the end of the year.

Swiss Franc foreign bonds were helped up by the weakness of the dollar and by
hopes that inflation would soon begin to abate.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1967 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

ACC board's unease grows over payout to ex-managing director

BYLINE: BY JOHN MOORE IN LONDON

SECTION: SECTION II; Companies and Markets; International Companies and Finance;
Pg. 14

LENGTH: 379 words


SIR LEO PLIATSKY, a director of Associated Communications Corporation, the UK
entertainments conglomerate, described the circumstances surrounding the
resignation of Mr Jack Gill, the group's managing director, and the proposal to
award him a record £700,000 ($1.3m) compensation package as "unsavoury."

His remarks were made yesterday after Lord Matthews, another Associated
Communications director, indicated that he would not be voting in support of a
resolution approving the payout to Mr Gill this Friday at an extraordinary
general meeting.

Sir Leo said yesterday that "the whole episode is unsavoury and distasteful,"
and added that he was considering his position as a director, although he
stressed that "nothing should be anticipated."

The row continued to simmer as pension fund investors, who collectively hold
around 8 per cent of the non-voting shares of Associated, consulted legal
counsel on what course of action was open to them to block the payment to Mr
Gill.

Mr Henry James, the director general of the National Association of Pension
Funds, said yesterday that the association's legal advisers are expected to have
reached a decision by this afternoon, "and we will then be advising our members
on what action, if any, should be taken."

The proposed payment to Mr Gill comes after Associated revealed loses of £8m
($15.2m) for the first half of its trading year.  No dividend was declared.  The
institutional shareholders are angry about the situation because, as holders of
non-voting shares, they are powerless to influence group decisions.

Lord Grade, Associated's chairman, holds 27.6 per cent of the voting shares.  Mr
Gill holds another 15 per cent.  Mr Robert Holmes a Court, the Australian
entrepreneur who has just become a director of Asociated, holds nearly 51 per
cent of the non-voting shares and a block of voting shares representing 3 per
cent.

Lord Matthews is expected to use the shares he owns or influences - about 9 per
cent - to vote against the Gill compensation payment at the extraordinary
general meeting on Friday.  But Sir Leo Pliatsky, a former senior British
Treasury official who holds only 500 of the Asociated voting shares, declined to
indicate which was he would vote at Friday's meeting.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1968 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Nippon Seiko's export springboard

BYLINE: Charles Smith

SECTION: SECTION II; Companies and Markets; International Companies and Finance;
Pg. 15

LENGTH: 734 words

HIGHLIGHT: Charles Smith looks at the development of European production by the
two leading bearing manufacturers in Japan


NIPPON SEIKO, Japan's largest bearing manufacturer, marked the fourth birthday
last spring of its Peterlee plant in the north of England by stepping up the
plant's output to 2.1m bearings a month from 1.75m.

The UK factory is only one-fifth the size of the company's largest Japanese
plant but achieves the same economies of scale from the company's highly
automated manufacturing processes.

Peterlee, does indeed match Japanese productivity levels according to Mr Junichi
Nagai, the NSK managing director -- and probably comfortably exceeds those of
larger, but less modern UK-based ball-bearing manufacturers.  A measure of the
plant's competitive strength is that 75 per cent of its output is exported, not
just to Western Europe but to places as far apart as Canada and Hong Kong.

Shipments to Hong Kong have been made in order to meet orders from the local
electronics industry which could not be handled by NSK's overstretched Japanese
production facilities.  By selling to Canada from the UK, rather than from
Tokyo, NSK gains tariff free entry to a market which would otherwise be
protected by a 15 per cent tariff barrier.

The Peterlee plant's exports to Europe account for about 30 per cent of NSK's
total sales in the region (with the remaining 70 per cent still being shipped in
from Japan).  In nine basic types of bearings, however, Peterlee meets the whole
of European demand.  It also provides the company's one and only means of entry
to the Italian market, since Italy bans direct imports of Japanese bearings.

Mr Nagai admits that for NSK, as for other Japanese companies based in the UK,
fluctuating sterling exchange rates have been a frequent problem for exports.
In NSK's case, however, the problem is at least partly solved by what might be
described as a burden-sharing relationship with the company's Europe-based sales
companies.

The Peterlee plant sells its bearings to (for example) NSK Deutschland for
sterling, not dollars or D-Marks, so that the German company shoulders the main
exchange risk.  It can afford to do this since UK-made bearings account for only
a portion of its turnover, with most of the remainder coming from bearnings made
in Japan.

Like most of Japan's other European - based bearing makers, NSK Peterlee imports
the steel balls for its bearings from Japan rather than making them on the spot.
Steel for the remaining parts of the bearings, however, is purchased locally at
least in part.

NSK can buy steel from British Steel Corporation because it runs a fully
integrated production operation at Peterlee (consisting of the four production
stages of machining, heat treatment, grinding and honing, and assembly).  A
semi-integrated production system, starting with grinding, would make it
impossible for the company to use local steel and would reduce the local content
value of the Peterlee factory's output substantially, says, Mr Nagai.

Having made these points, he admits that exchange rate fluctuations have at
times made the use of imported Japanese steel considerably more attractive for
the company than buying from BSC. NSK set out with the objective of supplying
around 70 per cent of its needs from BSC but was unable to do this when the
pound hit a peak and the yen entered a trough during the first half of 1980.

Exchange rate problems apart, Nippon Seiko seems highly satisfied with the
results of its Peterlee operation.  Labour problems at the plant have been
almost non-existent although the company admits it was "worried to begin with."
UK managers have learned a lot on the job during the four to five years they
have been with the company.  They are now rated very highly (the general manager
at Peterlee is Japanese but most other executive positions from production
manager downwards are British).

Finally NSK expresses relief about its relations with other members of the UK
ball-bearing industry.  The company's entry into Britain was strongly opposed by
established manufacturers, and particularly by Ransom Hoffman Pollard (RHP) the
biggest indigenous British manufacturer.

Today NSK believes it has good relations with RHP and with other local
manufacturers: "in fact," says Mr Nagai, "we feel like a British company." NSK
is not sure when it will next expand its UK output but sooner or later it will
probably add to the almost £10m it has already invested at Peterlee.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1969 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

NTN Toyo sticks to Japanese steel

SECTION: SECTION II; Companies and Markets; International Companies and Finance;
Pg. 15

LENGTH: 516 words


THE OSAKA-BASED company, NTN Toyo Bearing, is Japan's second largest
ball-bearing manufacturer but it led the industry in embarking on production in
Western Europe.

The reasons for building the company's wholly-owned Dusseldorf manufacturing
plant in 1972 were to "inspire confidence in our customers" and to contribute to
the economies of the countries in which NTN was selling its bearings.  Similar
motives inspired the opening of a factory in Chicago a year earlier and were
later to lead to the building of a second U.S. plant and a factory in Canada.

Although NTN went into Europe and the U.S. from what might be described as long
range strategic motives the company would probably never have taken the plunge
without one special advantage.  From 1962 onwards NTN had begun designing and
producing ball-bearing manufacturing machinery of its own which eventually
yielded a three-fold productivity gain over machines purchased from outside
suppliers.

It was not until this machinery had been thoroughly tried and tested in Japan
that NTN decided to go abroad to match its technology against leading European
bearing makers.

NTN's Dusseldorf factory employs 100 workers to turn out about 2.5m bearings per
year -- the lowest level at which economies of scale can be fully realised.  It
claims that for most of the year productivity at the German plant is the same as
the main NTN plant at Iwate, Western Japan.

Output does tend to fall in July and August -- sometimes to as low as 80 per
cent of normal -- when workers go on holiday or slacken the pace in hot weather.
This is something NTN accepts philosophically, although production in Japan
stays at the maximum level all year.

The Dusseldorf plant differs from NTN's Japanese production operations in two
other important ways.  Firstly, the steel balls which are incorporated in
finished bearings are imported from Japan and the U.S. and not made locally.
Secondly all the steel is shipped from Japan for the other bearing parts.  NTN
says there are economic reasons why it has not yet been able to use German
steel, but declines to go into details.

So far as the steel balls are concerned the reason for importing them is simply
that the Dusseldorf plant is too small to supply its own needs economically.
Economies of scale in the manufacture of steel balls are realised at a higher
level of production than is the case for finished bearings, the company says.

NTN supplies 30 per cent of its West European demand from the Dusseldorf
company.  It has been profitable for the past four years and free of any serious
labour problems for much longer than that.  But NTN has one serious worry about
Europe -- that demand is starting to fall.

The Dusseldorf plant ran at full capacity in 1980 supplying bearings to the
motor and electronic appliance industries in West Germany, France and the UK,
but at only 90 per cent capacity last year.  European demand should pick up
eventually, the company believes, but if and when NTN builds another bearing
factory it will be in North America -- not the EEC.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1970 of 2315 DOCUMENTS

                        Financial Times (London,England)

                            January 5, 1982, Tuesday

Chairman for Malaysia Mining

SECTION: SECTION II; Companies and Markets; International Companies and Finance;
International Appointments; Pg. 15

LENGTH: 43 words


MALAYSIA MINING CORPORATION BERHAD has appointed Encik Mohd Desa Bin Pachi as
executive chairman following the decision by Y.B.H. Dato' Junus Sudin not to
seek re-election to the board.  Encik Abdul Rahim Aki has been appointed
executive deputy chairman.

LANGUAGE: ENGLISH

                   Copyright 1982 The Financial Times Limited


                             1971 of 2315 DOCUMENTS